Spotify hits record quarterly profit

Swedish company Spotify announced a record quarterly profit that exceeded analysts' expectations and led to a significant increase in the value of the shares in the previous trading. This news attracted a lot of attention from investors and highlighted the stable growth of the company.

According to a Reuters report, Spotify's revenue rose 45% from the previous year to $1.21 billion. This result exceeded the forecasts of analysts who expected a slightly smaller amount. Earnings per share came in at $1.44, which also beat expectations of $1.15.

It's important to note that last year, Spotify implemented a number of cost-cutting measures, including layoffs and a reduction in its marketing budget. Despite this, the company has actively invested in promotions and expansion of the user base, in particular thanks to new investments in podcasts.

Spotify's paid subscribers grew to 246 million in the second quarter of 2024, slightly beating market expectations. The company's revenue for the period increased by 20% to 3.81 billion euros, which was slightly below analysts' forecast of 3.82 billion euros.

The company said it did not meet its goal of monthly active users. Spotify had planned for 631 million, but ended the quarter with only 626 million. This lag is due in part to challenging market conditions and high competition in the streaming audio industry.

Despite these challenges, record profits and growth in paid subscribers demonstrate Spotify's strong position in the market. The company continues to invest in expanding its audience and developing new products, which provides it with a competitive advantage.

Thus, Spotify shows stable growth and continues to strengthen its position in the streaming audio market, which opens up new prospects for further development and attracting investors.