In the third quarter, Spotify reported a net income of €65 million, or 33 cents per share. This is a significant improvement compared to the year-earlier period when the company experienced a loss of €166 million, or 99 cents per share. Analysts, as tracked by FactSet, were expecting a loss of 22 cents per share.
Moreover, Spotify's revenue increased to €3.36 billion from €3.04 billion, exceeding analyst expectations of €3.33 billion. This demonstrates the company's continuous growth and strong market position.
Music Advertising Revenue
Spotify experienced a reacceleration in its music advertising revenue, which saw an impressive growth of almost 20% in the quarter. This demonstrates the effectiveness of their ad-supported model and its ability to generate substantial revenue.
For the fourth quarter, Spotify expects to reach 601 million total monthly active users and generate revenue of €3.7 billion. This outlook surpasses the FactSet consensus of 597 million monthly active users and €3.7 billion in revenue. With continued strong performance and a growing user base, Spotify is poised for further success in the upcoming months.