Spotify shares were rising early Wednesday after the streaming platform saw a sharp increase in users during the first quarter.
Spotify (ticker: SPOT ) said monthly active users rose 19% in the quarter from a year earlier to 422 million. The number included 3 million extra users who were logged out during a service outage and then created new accounts to log back in, the company said.
The company said even without those users it still believes that MAUs would have reached 419 million in the first quarter, exceeding its expectations by about 1 million.
Spotify said its premium subscribers rose 15% in the first quarter to 182 million. The company said excluding the involuntary churn of about 1.5 million subscribers as a result of the company’s exit from Russia, “growth was above expectations and aided by outperformance in Latin America and Europe.”
The company said average revenue per user in its premium business rose 6% to €4.38.
Total revenue in the quarter rose 24% to €2.66 billion. Profit in the quarter was €131 million, up from €23 million a year earlier.
For the second quarter, Spotify said it expects monthly active users of 428 million.
Shares of Spotify were up 1.4% to $111.99 in premarket trading.
Credit: www.marketwatch.com /