Spotify Technology reported quarterly revenue on Wednesday that beat analysts’ estimates on higher advertising income and as more people subscribed to its premium service, sending the audio streaming platform’s shares up about 5 percent in trading before the bell.
The company has bet big on podcasts, investing over a billion dollars in acquiring shows such as the “The Joe Rogan Experience” and other businesses in a bid to draw users to a growing non-music audio segment.
Total monthly active users rose 19 percent to a record 422 million in the first quarter.
The Swedish company posted a 24 percent increase in revenue to EUR 2.66 billion (roughly Rs. 21,598 crore) in the quarter. Analysts on average had expected revenue of EUR 2.62 billion (roughly Rs. 21,271 crore), according to IBES data from Refinitiv.
Spotify said the share of podcasts in content consumption on its platform grew by double digits and reached an all-time high in the reported quarter.
The company now expects total monthly active users of 428 million in the second quarter following the closure of its Russian operations and the reversal of a loss of users after a service outage in March.
Spotify forecast second-quarter revenue of EUR 2.8 billion (roughly Rs. 22,724 crore), compared with estimates of EUR 2.81 billion (roughly Rs. 22,805 crore).
Premium subscribers, who account for most of the company’s revenue, rose to 182 million from 158 million, while advertisement-supported revenue rose 31 percent to EUR 282 million (roughly Rs. 2,288 crore).
© Thomson Reuters 2022
For all the latest Technology News Click Here
For the latest news and updates, follow us on Google News.
