Spotify Technology S.A., popularly known as Spotify, disclosed its financial performance for the third quarter subsequent to the closing bell on Tuesday. The company's earnings of $1.59 per share fell short of the $1.84 per share anticipated by analysts, although its $4.38 billion in quarterly sales exceeded the projected figure of $4.31 billion and showed growth compared to the $3.65 billion revenue in the same period the previous year.
Spotify's third-quarter report also highlighted significant growth in its monthly average user (MAU) net additions, which reached 14 million, exceeding guidance by one million. Additionally, the company saw a six million increase in subscriber net additions, outperforming estimates by one million. The total number of premium subscribers rose by 12% year-over-year to 252 million, illustrating growth across all regions both year-over-year and quarter-over-quarter.
In a communication to shareholders, Spotify expressed satisfaction with its third-quarter outcomes, citing that all key performance indicators (KPIs) either met or surpassed guidance, leading to record profitability levels. Following the release of the financial results, Spotify's shares experienced a 7.55% increase in after-hours trading, settling at $451.04 at the time of the announcement.