Shares of online streaming-music giant Spotify (SPOT) - Get Report surged nearly 10% on Monday after the company posted third-quarter earnings and revenue that beat analysts' forecasts on strong subscriber growth, particularly among premium users, amid ongoing interest and popularity in podcast offerings.
The Luxembourg-based company said it earned €241 million ($216.4 million), or 36 cents a share, vs. €43 million, or 23 cents a share, in the same quarter a year ago. Analysts polled by FactSet had been expecting a per-share loss of 25 cents.
Revenue came in at €1.73 billion, above the €1.72 billion expected by analysts polled by FactSet.
Total monthly active users, a key metric for Spotify, jumped some 30% to 248 million from 232 million in the second quarter and 191 million from last year, the company said, with most of the growth coming from Southeast Asia and Latin America.
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"We continue to see exponential growth in podcast hours streamed (up approximately 39% quarter-over-quarter) and early indications that podcast engagement is driving a virtuous cycle of increased overall engagement and significantly increased conversion of free to paid users," Spotify said.
Separately, Spotify said Paul Vogel, current vice president, will replace Chief Financial Officer Barry McCarthy, who will be retiring on Jan. 15, 2020. Pending shareholder approval, McCarthy will be re-appointed to the Spotify board, a role he held prior to joining the company as financial chief.
Shares of Spotify were up 14.51%, or $17.54 a share, at $138.40 in trading in New York on Monday. The company is one of a select few who have listed their shares directly rather than via an initial public offering.
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