Spotify's Stock Pops After Streaming-Audio Giant Posts Record Profit

Spotify Technology (SPOT) posted second-quarter results earlier nan doorbell Tuesday that delivered grounds profit and offered caller guidance.

The Swedish streaming-audio titan projects third-quarter operating income of 405 cardinal euros ($439.6 million) connected gross of 4 cardinal euros, pinch monthly progressive users (MAUs) climbing to 639 million. That was successful statement pinch analysts' gross projections complied by Visible Alpha.

Spotify reported operating income of 266 cardinal euros, its highest quarterly fig to-date, connected gross of 3.8 cardinal euros. Spotify posted diluted earnings per share of 1.33 euros, compared to a nonaccomplishment of 1.55 euros a twelvemonth earlier and good supra nan expert statement of 1.05, per Visible Alpha. 

Spotify shares jumped astir 12% successful caller trading Tuesday.

The maturation was driven successful portion by Spotify’s premium subscriber base, which accrued 12% year-over-year to 246 million, up of analysts’ expectations of 245.2 million. MAUs roseate 14% to 626 million, falling short of nan company’s guidance. 

The maturation successful Premium subscribers comes arsenic nan service’s value is expanding this month. In June, nan institution announced that individual Premium subscriptions will increase to $11.99 per period from $10.99. The Duo scheme is rising to $16.99 from $14.99, while nan Family scheme jumps $3, to $19.99 from $16.99.