Spotify Technology SA (NYSE:SPOT) shares are expected to fly to three-year highs today, in a resounding vote of confidence in the Swedish streaming giant’s financial rebound.
Spotify smashed forecasts by adding seven million new Premium subscribers in the quarter, one million more than previously anticipated.
This more than offset the lower-than-expected monthly active user (MAU) count of 626 million.
There are now 246 million Premium listeners on the platform, on top of the 393 million MAUs in the ad-supported tier.
Having reported a €302 million loss in the second quarter of 2023, Spotify has turned the ship around with a €274 million profit this quarter.
Spotify’s rapidly expanding podcast offering, which now hosts a quarter million shows, has helped to support advertising revenue growth.
In response to these numbers, Spotify’s valuation added $8 billion in pre-market trades, with its share price soaring to highs last seen in early 2021.
Spotify said it expects Premium subscribers to reach 251 million in the third quarter.