People exit the Spotify headquarters building in Lower Manhattan, New York City, January 23, 2023.
Eduardo Munoz Alvarez | View Press | Corbis News | Getty Images
Spotify Shares rose 9% early Tuesday after the company reported Q4 earnings It exceeded analyst expectations for revenue and showed a significant increase in users.
Here’s how the company did it:
- Loss per share: Analysts Expect a €1.27 Loss Against a €1.40 ($1.52) Loss, According to Refinitiv
- Earnings: €3.17bn vs analyst estimate of €3.16bn (Refinitiv)
Spotify reported 489 million monthly active users for the quarter, up 20% year-over-year. Monthly active users for the quarter increased by 33 million, a record for the company. Spotify also reports 205 million paying subscribers, up 14% from a year ago.
among them Third Quarter Report, Spotify said it expects to add about 23 million new monthly active users in the fourth quarter, bringing the total to 479 million. Also, sales increased to 3.2 billion euros and in the fourth quarter he expected to record 202 million paying subscribers.
Spotify continues to invest in advertising, with ad revenue up 14% year-over-year and accounting for 14% of total revenue. The company attributes this growth to podcasting.
Earlier this month, Spotify announced its next plans. 6% reduction in global workforce That’s because consumers and advertisers are battling a dark economic environment that has caused them to limit their spending. The job cuts affected about 600 employees.
CEO Daniel Ek wrote: Note “We take full responsibility for the actions that have brought us here today,” it said in a public post on the company’s website.
“In hindsight, I was too ambitious to invest in earnings growth ahead of time,” he said.
