Spotify beat Wall Street estimates of its second-quarter revenue, since the music company streaming posted a 20 percent increase in paying subscribers for its premium service, driven by demand in Europe and North America.
The upper end of the company’s current quarter forecast for revenue and premium subscribers It also exceeded expectations.
Spotify foresees revenues of between 2 thousand 310 million and 2 thousand 510 million euros and between 170 million and 174 million premium subscribers. Analysts, on average, expected a turnover of 2 thousand 390 million euros and 170.4 million subscribers.
The covid-19 continued to weigh on its performance in various marketsBut revenue from its advertising business, which was hit by the pandemic last year, grew 110 percent to € 275 million.
Spotify has also been investing heavily in its podcasting business. to compete with Apple and in April launched a paid subscription platform for podcasters in United States.
The company currently has 2.9 million podcasts on its platform and share of the service in general consumer hours reached an all-time high in the quarter.
Their pOdcasts from personalities like Joe Rogan and Bill Simmons continue to attract more users. Revenue rose to 2.33 billion euros for the quarter from 2.15 billion euros a year earlier, above the 2.29 billion euros expected by analysts, IBES data from Refinitiv showed.
The premium subscribers, who account for the majority of the company’s turnover, reached 165 million, coinciding with the expectations of analysts.
Total monthly active users increased 22 percent to 365 million.
The company reported a net loss of 20 million euros, or 19 euro cents per share, an improvement over the negative balance of 356 million euros, or 1.91 euros per share, from a year ago, and exceeding the loss of 37 cents. euros expected by analysts.
Shares of Spotify were up 3.5 percent in pre-market trading.