Spotify Stock Pops as Subscribers Jump

Key Takeaways

• Spotify added more subscribers than analysts expected in the third quarter.
• The audio streaming giant's subscriber outlook also came in slightly ahead of projections.
• Shares surged in extended trading Tuesday and have more than doubled in value since the start of the year.

Spotify (SPOT) added more subscribers than expected in the third quarter, sending shares higher after the bell Tuesday.

Monthly active users climbed 11% year-over-year to 640 million, and premium subscriptions came in at 252 million, compared to expectations of 251.1 million. Looking ahead, Spotify guided for 665 million MAUs and 260 million premium subscribers in the fourth quarter, slightly ahead of the analyst consensus.

The Swedish audio streaming giant saw third-quarter revenue grow 19% year-over-year to 3.99 billion euros ($4.24 billion), slightly below the analyst consensus from Visible Alpha. Operating income of 454 million euros compared to 32 million euros a year earlier and topped expectations. 

Spotify's Results Come After Price Increases

The results come after Spotify raised the price for individual Premium subscriptions to $11.99 per month from $10.99 in July. The Duo plan increased to $16.99 from $14.99, while the Family plan jumped to $19.99 from $16.99.

Shares of Spotify surged over 8% in extended trading Tuesday. They've more than doubled in value since the start of 2024.

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