(Hypebot) — Spotify [NYSE: SPOT] stock jumped by 16.14% mid-day Tuesday on news that the streamer had turned profitable despite slower-than-expected user growth in Q1 2024.
Spotify’s monthly active users rose from 602 million to 619 million in the last three months and Premium paid subscribers grew by just three million in Q1 to 239 million.
But revenue and profitability were strong.
After several rounds of layoffs, the streamer reported operating income of $179 million, compared with a loss of $166.5 million in the prior-year period. Total revenue grew to $3.84 billion.
“We’ve talked about 2024 as the year of monetization and we’re delivering on that ambition,” said Spotify co-founder and CEO Daniel Ek. “Now as we’ve shifted to focus on strong revenue growth and margin expansion, we see a clear opportunity to ensure we are also continuing to grow the top of our funnel. I feel good about the changes we are implementing and remain very confident in our ability to reach the ambitious plans we’ve outlined.”
Topline Stats
- Monthly Active Users grew 19% Y/Y to 615 million.
- Subscribers increased 14% Y/Y to 239 million.
- Total Revenue was up 20% Y/Y to €3.6 billion.
- Gross Margin reached 27.6%.
- Operating Income improved to €168 million.
Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.
