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Spotify Technology S.A. (NYSE: SPOT) released its third-quarter financial results before the markets opened on Thursday. The company said that it had $0.27 in earnings per share (EPS) on $1.57 billion in revenue, which compares with consensus estimates that called for a net loss of $0.41 per share and revenue of $1.51 billion. Note that the company originally reported its results its euros.
During the quarter, monthly active users (MAUs) grew 28% year over year to 191 million. Growth in Spotify’s emerging regions of Latin America and Rest of World continues to outpace growth in its more established markets.
Ad-supported MAUs totaled 109 million at the end of the quarter, up 20% from last year.
Premium subscribers totaled 87 million at the end of the quarter, up 40%.
Looking ahead to the fourth quarter, the company expects to see total MAUs in the range of 199 million to 206 million, up 24% to 29% year over year, and roughly 93 million to 96 million in total premium subscribers.
Consensus estimates for the fourth quarter call for a net loss of $0.47 per share and $1.51 billion in revenue.
Spotify detailed in the report:
Ad-Supported MAUs totaled 109 million at the end of the quarter, up 20% Y/Y. Earlier this year we began rolling out a new user interface for our Ad-Supported tier of service, the first major revision since our mobile product was introduced in 2014. We expect this new user interface to drive improvements in engagement and retention.
Shares of Spotify closed Wednesday at $149.69, with a consensus analyst price target of $206.09 and a 52-week trading range of $131.01 to $198.99. Following the announcement, the stock was down 8% at $137.95 in early trading indications Thursday.
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