SPOTIFY Q1 PROFIT TOPS $1B; SUBS HIT 239M

Spotify beat expectations in its fiscal Q1, registering its biggest-ever quarterly profit while growing its subscriber base by 3m to 239m, a 14% uptick.

The leading DSP’s gross profit topped €1b ($1.08b), while operating income hit €168m ($179m), compared with a loss of €156m in Q1 2023. Revenue totaled €3.64b ($3.88b), 20% above 2023. The streamery reported net income of €197m ($210m).

Spotify expects its subscriber count to increase to 245m in Q2. Total monthly active users (MAUs) hit 615m; the company expects MAUs to hit 631m in Q2.

“We’ve talked about 2024 as the year of monetization, and we’re delivering on that ambition,” said the Spot's ruler, Daniel Ek. “Now as we’ve shifted to focus on strong revenue growth and margin expansion, we see a clear opportunity to ensure we are also continuing to grow the top of our funnel. I feel good about the changes we are implementing and remain very confident in our ability to reach the ambitious plans we’ve outlined.” As you'll note, Ek celebrated the latest news by posing with some giant audiobooks.

The streamery plans to raise prices by $1 to $2 a month in five markets, including the U.K. and Australia. The changes are expected to come at the end of April, with U.S. prices to rise later this year.

Spotify stock moved more than 9% higher in premarket trading on Tuesday following the results. Shares have surged more than 100% over the past year and are up 43% YTD.

Spotify CFO Paul Vogel stepped down from his position on 3/31. He’ll be succeeded at the start of Q3 by Christian Luiga, who comes over from Saab.