Spotify Adds Subscribers As Q3 Revenue Grows, Stock Pops

Jill Goldsmith
·2-min read

Music streaming giant Spotify grew monthly active users and premium subscribers last quarter, beating forecasts on both of those and other metrics as the stock rose more than 9% after the numbers before settling slightly to well over $450.

The company has become a bit of a Wall Street darling recently with a number of analysts recently upping estimates and stock price targets ahead of the quarterly numbers.

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Revenue was in line and grew 21% for the three months ended in September to 4 billion euros. Premium revenue rose by 21%; ad-supported revenue grew by 6%.

MAUs, or monthly average users, saw net additions tick up 11% to 640 million, surpassing guidance by 1 million.

Premium subscribers grew 12% year-on-year to 252 million, reflecting year-over-year and quarter-on-quarter-on-growth across all regions.

Operating income was a beat at 454 million euros. Free cash flow jumped to 711 million euros. The company is heading to full-year profitability in Q4.

“We’ve never been in a stronger position, thanks to the outstanding execution by our team. I’m incredibly proud of the way we’ve delivered and the progress we’ve made,” said CEO Daniel Ek. “We’re where we set out to be—if not a little further—and on a steady path toward achieving our long-term goals. This relentless pursuit of innovation and commitment to growth sets us up to deliver the most valuable user experience in the industry, while reinforcing the core strengths that make Spotify unique. I am very excited about what lies ahead for us.”

CEO Daniel Ek will discuss the numbers with analysts at 5 pm ET.

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