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Spotify Shares Jump Nearly 12% on Heightened Expectations for Margins, Profits
Spotify’s stock is up after its earnings report showed higher profits expectations as well as a higher forecast for margins.
"We consider this a real trend" rather than the result of one-off events, said interim CFO Ben Kung during Tuesday's earnings call when asked by an analyst what to expect from margin growth for the remainder of 2024. Although Spotify didn’t surpass forecasts for subscriber growth, it met expectations and generated more revenue, on average, from each paid customer. Spotify’s fortunes began to change in 2023 after the company knuckled down, laid off 17% of its global workforce in December and jettisoned many high-priced, celebrity podcast deals — namely parting ways with Price Harry and Meghan Markle’s Archewell Studio and striking a non-exclusive deal with the previously exclusive-to-Spotify The Joe Rogan Experience.
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