Overview

• Spotify reported a profit for the first time in a year and a half at $69 million, contributing to a 10% jump in its share price.
• The rise in profit is attributed to a combination of subscription price hikes, a growth in ad-supported revenue, and cost-cutting measures including reductions in marketing and personnel expenses.
• The company reported about $3.6 billion in revenue last quarter, up from $3.2 billion the previous year, exceeding analysts' predictions.
• The number of monthly active users and premium subscribers both saw substantial growth with increases of 26% and 16% respectively, pushing Spotify's total premium subscribers to 226 million.
• Future growth is expected, with the company setting a target of 601 million monthly users for Q4 2023 and making plans to expand into other audio formats, such as audiobooks, as well as increasing its focus on podcasts.