Spotify Subscriber Gains Beat Expectations, Driving Double-Digit Revenue Growth in Q3

Spotify added more premium subscribers than expected in the third quarter, helping lift revenue and operating income by double digits. The results suggest its investment in rebuilding advertising technology is beginning to show progress, while costs are moderating despite higher spending on marketing and cloud and AI services.

Revenue increased 14% in constant currency to €4.97 billion, and operating income rose 12% to €672 million. Spotify gained 6 million net new premium subscribers, one million above its forecast, bringing the total to 306 million; monthly active users grew 11% to 788 million. Ad-supported revenue rose 9% to €482 million, while operating expenses increased about 26% year on year to €967 million. For the fourth quarter, Spotify forecasts 30 million additional monthly active users and 10 million more premium subscribers.