Spotify Technology (SPOT) reported better-than-expected subscriber and user numbers for the fourth quarter, despite lighter-than-anticipated earnings. The streaming giant earned $1.88 per share from sales of $4.53 billion, beating analyst estimates.
In addition to its commercial-free subscription service, Spotify offers an ad-supported option, which contributed to the growth in users. The company added 11 million premium subscribers, exceeding expectations, and ended 2024 with 263 million global subscribers.
For the next quarter, Spotify forecasts $4.34 billion in revenue, slightly above analyst estimates. It expects to add 2 million more premium subscribers, bringing its total to 265 million by March.
Spotify’s stock surged 13.2% to close at $621.77, after breaking out of a cup base on January 22. Chief Executive Daniel Ek expressed optimism for 2025, highlighting the company’s focus on driving long-term impact and maintaining efficiency while growing sustainably. Spotify’s stock is also featured on three IBD lists: Leaderboard, Big Cap 20, and Tech Leaders.
Source: https://www.investors.com/news/technology/spotify-stock-spot-q4-2024-earnings