Spotify shares jump over 10% after Q3 earnings miss, CEO downplays AI competition
Spotify reported third‑quarter revenue of €4.69 billion, slightly below analysts' expectations, while premium subscriber count grew to 306 million. Advertising revenue increased 9% on a constant‑currency basis, and operating expenses were up 26% year‑over‑year, driven mainly by marketing, cloud and AI costs. Co‑CEO Gustav Söderström said the firm now functions as an AI agent and faces no threat from rivals, and the company forecast Q4 operating income of $918.4 million and 316 million premium users. The stock rose more than 10% in morning trade, reaching a ten‑month high.
Why it matters
The share price surge, noted by the StockTwits article, shows investor optimism despite the revenue shortfall, potentially supporting short‑term buying pressure. The Q4 operating‑income outlook of $918.4 million may set a new earnings target for the coming quarter.
Key facts
- 1Q3 revenue was €4.69 billion, marginally below the $5.6 billion consensus estimate. finance.yahoo.com
- 2Premium subscriber base reached 306 million, a 9% increase from the prior period. finance.yahoo.com
- 3Advertising revenue grew 9% in constant currency during Q3. finance.yahoo.com
- 4Operating expenses rose 26% year‑over‑year in Q3, mainly from marketing, cloud infrastructure and AI investments. finance.yahoo.com
- 5Spotify forecast Q4 operating income of $918.4 million and 316 million premium subscribers. finance.yahoo.com
- 6Shares climbed more than 10% in morning trade, putting the stock at a ten‑month high. stocktwits.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.