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Spotify Stock Surges 14% Following Strong Q1 Results
Apr 23, 2024 3:27 PM - Davit Kirakosyan
Image credit: FMP
Shares of Spotify (NYSE:SPOT) soared over 14% intra-day today following the audio streaming giant's announcement of fiscal Q1/24 results that exceeded expectations for earnings, revenue, and gross margins.
Spotify disclosed earnings per share of EUR 0.97, surpassing the anticipated EUR 0.64. The company's revenue reached EUR 3.64 billion for the quarter, edging above the forecasted EUR 3.61 billion. Premium revenue alone amounted to EUR 3.25 billion, ahead of the expected EUR 3.22 billion.
In user metrics, Spotify's monthly active users (MAUs) totaled 615 million, slightly below the predicted 617.89 million. Premium subscribers reached 239 million, narrowly missing the forecast of 239.26 million. Spotify particularly excelled with a gross margin of 27.6%, outperforming the expected 26.5%.
For the upcoming second quarter, Spotify projects revenue of EUR 3.8 billion, slightly trailing the consensus estimate of EUR 3.85 billion. The company anticipates MAUs to rise to 631 million and premium subscribers to increase to 245 million, both figures slightly below expectations.
Additionally, Spotify forecasts a second-quarter gross margin of 28.1%, surpassing analyst expectations of 26.7%.
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