Spotify reported strong first-quarter earnings on Tuesday, exceeding analyst expectations on both revenue and earnings per share. The streaming giant also beat guidance on quarterly gross margin and issued optimistic guidance for the upcoming quarter, including a 28.1% gross margin driven by cost improvements.
Spotify’s first quarter results surpassed expectations, marking a significant milestone for the streaming giant. Revenue soared by 20% to 3.6 billion euros ($3.9 billion), while gross profit surged by 31% to 1 billion euros ($1.08 billion). This surge in revenue was driven by growth in both premium subscribers and ad-supported revenue. Notably, Spotify’s profitability returned, with operating income reaching 168 million euros ($180 million) in the quarter, marking a substantial improvement from the 156 million euro loss in the same quarter last year. This strong financial performance puts Spotify on track to achieve its 2024 growth target.
