Spotify Surpasses Q1 Profit Expectations, Faces Operational Challenges from Layoffs

Despite robust revenue growth and a swing to profit, Spotify's recent layoffs have led to unexpected operational disruptions, impacting user growth targets.

Spotify reports a Q1 net income of $212.6 million, reversing a previous loss and exceeding Wall Street predictions.
Shares rise significantly as the company announces expanded offerings and anticipates further growth in ad revenue and subscriber numbers.
CEO Daniel Ek acknowledges that the December layoffs disrupted operations more than anticipated, affecting the company's performance.
Spotify plans to introduce new subscription tiers, including audiobook-only and music-only options, to increase consumer flexibility.
The company remains focused on long-term profitability, despite short-term operational challenges from workforce reductions.

The Hollywood Reporter