The Spotify logo is displayed on a screen on the floor of the New York Stock Exchange on December 4, 2023.
Brendan McDiarmid | Reuters
Spotify Shares rose in extended trading Tuesday after the Swedish music streaming company released fourth-quarter earnings forecasts that beat estimates.
Here is the company's performance, compared to what analysts expected:
EPS: €1.45 vs. €1.72 forecast by LSEG Revenue: €3.99 billion vs. €4.02 billion forecast by LSEG Monthly Active Users (MAUs): 640 million vs. 639 million forecast by StreetAccount
While the company's third-quarter earnings and revenues lagged estimates, investors instead focused on guidance for the current period.
Spotify said operating income in the fourth quarter would reach €481 million, beating analysts' average estimate of €432.7 million, according to StreetAccount. The number of monthly active users will rise to 665 million, compared to analysts' expectations of 659.3 million, based on StreetAccount estimates.
However, revenue guidance lagged estimates. The company said sales would reach 4.1 billion euros, below analysts' average estimate of 4.26 billion euros, according to LSEG.
Subscribers to Spotify Premium, the company's ad-free membership service that allows users to choose songs on an unlimited basis, rose 12% year over year to 252 million, slightly above estimates.
Spotify shares rose about 8% after the report to $452.35 after rising 2.2% in regular trading. The stock has doubled in value this year.
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