Spotify shares jumped 10% on Tuesday after the company reported a surprise profit for the third quarter — its first quarterly profit in a year and a half — as price increases and cost-cutting measures took hold.
The Swedish music streaming giant posted a profit of 65 million euros ($68.9 million), driven by "lower marketing spend and lower personnel costs and related costs."
Earlier this year, Spotify laid off 200 people, or 2% of its workforce, as part of a strategic change in its podcasting unit.
The company had 574 million monthly active users in the quarter, compared with 572.1 million estimated, according to StreetAccount.
Monthly active users drove 447 million euros of ad-supported revenue, the company reported, an increase of 16% year over year.
Persons:
Paul Vogel, Rich Greenfield
Organizations:
Spotify, LSEG, Twitter
Locations:
Swedish, Australia, U.S