Spotify reported a record quarterly profit of 1.11 billion euros, slightly surpassing analyst expectations of 1.07 billion euros.
Earnings per share were 1.33 euros, beating the forecast of 1.06 euros, pushing the company’s shares up by more than 14% in premarket trading.
Revenue for the second quarter of 2024 rose to 3.81 billion euros, just below the 3.82 billion euros expected by analysts.
The Swedish audio-streaming giant’s efforts to reduce costs through layoffs and marketing budget cuts last year contributed to the profit growth.
However, Spotify fell short of its target for monthly active users (MAUs), attracting 626 million MAUs instead of the anticipated 631 million. The company attributed this shortfall to adjustments in marketing strategies.
CEO Daniel Ek expressed confidence in achieving future user growth, despite the current miss. Spotify’s gross profit margin also improved to 29.2%, up from 27.6% in the previous quarter.