Spotify Posts Unexpected Quarterly Profit with User Growth Exceeding Forecasts

Spotify sees a boost in revenue and operating income with subscription price hikes, cost cuttings, and an influx of 226 million premium subscribers, setting a target of 601 million monthly users for the final quarter of 2023.

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.

The Hollywood Reporter

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