The Spotify earnings report is out in the world, and it’s better than expected. On Monday, April 29, SPOT stock fluctuated between green and red after Spotify Technology SA (NYSE:SPOT) released its Q1 earnings report.
Here’s what we know.
Spotify Earnings Shoots SPOT Stock into the Green
Today, Spotify, a leading streaming platform, said it’s hit 100 million paid subscribers, which means it has double the number of subscribers of Apple Music. While the company has surpassed its rival, one many thought was putting pressure on it, the Stockholm, Sweden-based company isn’t even thinking about that. “Competition is just not a big factor for us,” says Daniel Ek, Spotify CEO. “It’s really all about growth.” And boy did the company grow.
In the Spotify earnings report, it shows that MAUs hit 217 million in the Q1 2019. For perspective, MAUs were at 173 million in Q1 2018. Meanwhile, Spotify premium subscribers hit the 100 million mark, as previously mentioned. In terms of revenue, the Spotify earnings report shows that its total revenue increased 33% Y-O-Y to $1.69 billion (1.51 billion euros). According to The Globe and Mail, this surpassed analysts’ expectations of 1.47 billion euros.
While the quarter proved to be a success, Spotify doesn’t plan on taking this win and slowing down. “Over time, our ambition is to develop a more robust advertising solution for podcasts,” says the company. Doing so will allow Spotify to “layer in the kind of targeting, measurement, and reporting capabilities we have for the core ad-supported business.”
>> L’Oreal AI Mya and Seedlink: Making the Hiring Process Easier
Despite the positive Spotify earnings report, SPOT stock is, at the time of writing, trading in the red. According to Yahoo Finance, SPOT stock is trading at $137.93, which puts it down 0.25%. The stock was, however, trading in the green at one point in the afternoon in New York.
Takeaway
What do you think of the Spotify earnings report? Are you surprised SPOT stock didn’t shoot up on the news? Do you think it proves Spotify maintains a competitive edge against Apple Music? Let us know what you think in the comments below!
Featured image: DepositPhotos © wdnet
