The stock price of Spotify surges as record earnings kick off Daniel Ek’s «year of monetization.»
Following the release of Q1 2024 data, when Spotify boasted that it reached record profitability, the stock price of the corporation surged. As of right now, Spotify’s stock is up around 6.5% to little over $290 per share.
Spotify reported «a solid start to the year» for the first quarter of 2024, with several key measures exhibiting double-digit increase. Among these measures are:
- 615 million active users each month, increasing 19% from the previous year
- 239 million users, up 14% year over year
- Total revenue of $3.83 billion (increased 20% year over year)
Daniel Ek, the CEO and creator of Spotify, announced the results, “We’ve talked about 2024 as the year of monetization and we’re delivering on that ambition. Now as we’ve shifted to focus on strong revenue growth and margin expansion, we see a clear opportunity to ensure we are also continuing to grow the top of our funnel. I feel good about the changes we are implementing and remain very confident in our ability to reach the ambitious plans we’ve outlined.”
However, Q124 did not see the firm attain a flawless run of hits. Even while the overall number of monthly active users (MAUs) increased by 19% year over year to 615 million, it was less than the 618 million MAUs that Spotify had first predicted—a three million deficit.
From the perspective of an investor, though, there was enough to be happy about: In the company’s existence, gross profit exceeded €1 billion ($1.06 billion) for the first time. Additionally, Spotify said that its quarterly gross margin was 27.6%, up 243 basis points from the previous year, partly attributable to higher music and podcast profitability.
