Spotify Technology SA reported strong financial results for the first quarter of its 2024 fiscal year on Tuesday. Revenue climbed by 20% year-over-year to $3.95 billion, exceeding analyst estimates of $3.85 billion. Earnings per share (EPS) of $1.05 also beat the consensus of 70 cents. The company experienced robust growth in premium revenue, which rose by 20% to 3.25 billion euros. This was driven by an increase in subscribers as well as growth in average revenue per user (ARPU). Total Monthly Active Users (MAUs) reached 615 million, a 19% increase year-over-year. While Spotify had anticipated a slightly higher figure, it still missed its guidance by 3 million. Ad-supported MAUs saw an impressive 22% year-over-year growth, totaling 388 million. Premium subscribers also witnessed a significant 14% year-over-year increase, reaching 239 million. Spotify maintains a healthy financial position, with 4.7 billion euros in cash and equivalents, and generated 207 million euros in free cash flow. For the second quarter, Spotify projects revenue of 3.8 billion euros and 631 million MAUs. The company’s strong performance has garnered positive reactions from analysts, leading to price target increases by Pivotal Research, Benchmark, and Rosenblatt.