Spotify’s shares rose by over 15% after the company beat first-quarter estimates and provided strong guidance for the next quarter. Trading around $315 in mid-morning, the stock reached its new 52-week high today.
The audio giant has undergone several rounds of layoffs and price increases in the past year to boost revenue and improve margins.
Wall Street had been expecting $3.87 billion in revenue from the company, but it posted $3.95 billion. The company’s earnings per share were 97 euro cents ($1.04), exceeding LSEG analysts’ expectations.
The Swedish company reported an operating income of 168 million euros ($179 million), compared to a loss of 156 million euros ($167 million) in the same period last year. Further, it expects a strong second-quarter operating income of 250 million euros ($267 million), beating Wall Street consensus expectations.
The number of monthly active users increased by 19% to 615 million, lower than the expected 618 million due to a reduction in marketing activities. The number of premium subscribers has reached 239 million, an increase of 14% from last year, meeting Wall Street’s expectations. The company expects to hit 245 million subscribers in the second quarter.