Spotify $SPOT stock rose by almost 17% after the company beat first-quarter estimates and provided strong guidance for the next quarter. The stock hit a 52-week high and was up 16.8% to $318 per share in afternoon trading.
The audio giant has undergone several rounds of layoffs and price increases in the past year to boost revenue and improve margins.
Wall Street had been expecting $3.87 billion in revenue from the company, but it posted $3.95 billion. The company’s earnings per share were 97 euro cents ($1.04), exceeding LSEG analysts’ expectations.
The Swedish company reported an operating income of 168 million euros ($179 million), compared to a loss of 156 million euros ($167 million) in the same period last year. Further, it expects a strong second-quarter operating income of 250 million euros ($267 million), beating Wall Street consensus expectations.
The number of monthly active users increased by 19% to 615 million, lower than the expected 618 million due to a reduction in marketing activities. The number of premium subscribers has reached 239 million, an increase of 14% from last year, meeting Wall Street’s expectations. The company expects to hit 245 million subscribers in the second quarter.