Spotify Technology (SPOT), the leader in streaming music, surpassed expectations on Tuesday for both new subscribers and listeners totals during the first quarter. Stocks of Spotify soared after the news.
Stockholm-based company has added 5 million subscribers to its premium service in the quarter ending March. Analysts expected 2,23 million new subscribers. Spotify's total paid subscribers reached 210 millions worldwide at the end of the period.
Spotify's 515 million active monthly users in the first three months was higher than Wall Street's goal of 502 millions. Spotify also offers a commercial-free service that is supported by ads. The number of monthly active users increased by 22% over the past year.
Spotify announced on March 8th that it had reached the half-billion mark in its first quarter.
Stock of Spotify Rises after Quarterly Report
Spotify expects to add 7 million new net premium subscribers for the current quarter. It also expects to hit 530 million monthly active users by the end of June.
Stocks of Spotify rose 4.9% in morning trading on the stock exchange today to 137.93.
Audio entertainment service Spotify lost $1.24 per share in sales of $3.26 Billion for the quarter ending March. Spotify's financial results are reported in euros. FactSet polled analysts who predicted that Spotify would lose 95c per share on $3.4 billion in sales.
The company reported that revenue fell short of expectations due to a weak advertising market.
According to IBD StockCheckup, Spotify stock has a Relative Strength rating of 94 out 99. This puts Spotify in the top 6% for stock performance over the last 12 months.