The streaming service has also seen growth in developing regions which has led to an increase in its monthly active users. Spotify faces tough competition from the streaming services of giants like Apple (NYSE: AAPL) and Amazon (NYSE: AMZN). However, its investments in podcasts bodes well and is anticipated to help the company achieve profitability.
In the third quarter of 2019, Spotify reported higher revenues and profits. Revenues grew 28% to EUR1.73 billion. EPS rose 57% to EUR0.36, beating estimates. Total monthly active users (MAUs) grew by 30% year-over-year to 248 million while global premium subscribers increased 31% to 113 million.
For the fourth
quarter, the company has guided for total revenues of EUR1.74 billion to EUR1.94
billion. The number of monthly active users is expected to come in the range of
255 million to 270 million. The number of premium subscribers are expected to
be between 120 million and 125 million.
Spotify’s shares have gained 6% in the past one year. The stock has an average price target of $169.57, which represents an upside of 16% from the current price.