Spotify Forecasts Fourth-Quarter Profit Above Estimates on AI Bets
- On Thursday, Spotify reported third-quarter revenue of €4.97 billion, narrowly missing LSEG estimates of €4.98 billion, though operating income reached €672 million.
- Premium subscribers grew to 306 million with 6 million net new additions exceeding earlier guidance, helping drive double-digit increases in revenue and operating income.
- Monthly active users rose to 788 million, supported by AI-powered features like the AI DJ and prompt-based playlists that curate personalized music mixes.
- For the fourth quarter, Spotify predicts €5.2 billion in revenue and 316 million premium subscribers, with operating income forecast at €820 million for the holiday season.
- Co-CEO Alex Norstrom said the company has "built a strong business that keeps compounding," despite operating expenses rising 26% from marketing and cloud/AI spending initiatives.
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35 Articles
Spotify Stock Surges 10% on Q3 Subscriber Beat And Bullish Forecast
Spotify shares jumped 10% at $572 billion Thursday to a 10-month high as the music streaming giant hit 306 million premium subscribers in the September quarter (up 9% year on year) – one million ahead of forecasts, and with growth across all regions. It guided to another 10 million net ads in the current fourth […]
The company's revenue reached EUR 4,969 million. Of the total turnover, EUR 4,487 million corresponds to premium subscriptions, while EUR 482 million corresponds to advertising revenues.
Between July and September, the revenues of the Swedish company reached 4,969 million euros, an increase of 16% compared to the previous year, while operating profit grew to 967 million euros, plus 25%.
Spotify Jumps 10% as Premium Subscriber Growth Tops Forecasts; Sirius XM Stays Put
Spotify stock surged while the rest of the media sector stumbled, powered by a subscriber count that outran its own guidance and a fourth-quarter target that raised the stakes even higher. The question now is whether the company's audiobook bet and ballooning expenses can hold that momentum together.
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