FILE PHOTO: Spotify forecast fourth-quarter profit above Wall Street expectations betting on strong user growth and a lift from price hikes within the essential vacation season.
| Photo Credit: Reuters
Spotify forecast fourth-quarter profit above Wall Street expectations on Tuesday, betting on strong user growth and a lift from price hikes within the essential vacation season.
These outcomes mark the corporate’s first earnings report for the reason that September announcement that founder-CEO Daniel Ek will transition to government chairman in January.
The Swedish audio-streaming large expects working earnings of 620 million euros ($723.04 million) within the fourth quarter, above estimates of 618.6 million euros, in response to LSEG-compiled information. It additionally beat third-quarter earnings expectations.
The firm has leaned on price will increase in recent times to drive earnings growth, assured that its ubiquity ensures customers stick round. It raised the price of its premium particular person plan in additional than 150 markets within the September quarter.
CEO Daniel Ek instructed Reuters that funding priorities heart on top-line growth, driving user acquisition in rising markets and increasing content material to incorporate extra podcasts, movies and audiobooks.
“We think that there’s still a lot of room left for us to grow in our core business.”
To draw extra customers, Spotify rolled out options together with a long-awaited high-quality streaming possibility referred to as lossless audio. It has additionally tripled its audiobook catalog to 500,000 titles in 14 markets since launching them round two years in the past, which the corporate mentioned final month helped push up audiobook listeners and consumption hours by greater than a 3rd.
Spotify has additionally been doubling down on video content material with practically 500,000 video podcast reveals now out there on the platform.
In the third quarter, premium subscribers rose 12% to 281 million. Its month-to-month energetic customers web additions of 17 million took the whole to 713 million, exceeding expectations.
It forecast an 8 million enhance in premium subscribers to 289 million, marginally beneath the estimate of 290.9 million, because it faces intense competitors from Apple and Amazon’s music streaming choices.
Its quarterly month-to-month energetic customers forecast of 745 million was above an estimate of 737.3 million.
Its fourth-quarter income forecast of 4.5 billion euros was consistent with estimates 4.57 billion, after third-quarter income topped expectations with a 7% rise.
Spotify’s shares had been marginally down in unstable morning buying and selling. The inventory has risen round 44% this 12 months.
Published – November 05, 2025 10:52 am IST