Spotify stock jumps on strong earnings growth amid turnaround plan

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Spotify News

Company Guidance,Operating Income,Gross Margins

Spotify reported quarterly earnings before the bell on Tuesday. Here's what to know.

) reported fiscal second quarter earnings on Tuesday that beat expectations as revenue came in line with estimates. The audio giant once again posted a profit on an adjusted basis as the company'sOn top of price adjustments, the company has committed to multiple rounds of layoffs and initiatives to boost top-line growth and improve margins,The audio giant reported operating income of 266 million euros , compared with a loss of 247 million euros in the prior-year period.

Spotify has previously said it expects the metric to come in between 30% and 35% over the long term amid plans to further scale its podcasting and ads business.Total monthly active users came in below company estimates of 631 million to hit 626 million in the quarter — but it was still a 14% improvement compared with the total in the year-ago period. The streaming service anticipates Q3 MAUs to come in at 639 million.

The average revenue per user, or ARPU, for Premium subscriptions increased 8% year over year to 4.62 euros ARPU was driven by price increase benefits that were partially offset by discounted plans and lower prices in emerging markets, the company said.A screen displays the logo and trading information for Spotify on the floor at the New York Stock Exchange in New York City, Feb. 6, 2024.

 

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