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Spotify beats earnings forecasts with strong user growth and higher prices, boosting shares despite past year's decline.
Spotify reported first-quarter earnings expectations above Wall Street forecasts, with operating income of 660 million euros and revenue of 4.5 billion euros, driven by strong user growth and price hikes.
The company forecast 759 million monthly active users and 293 million premium subscribers, slightly exceeding estimates, though premium subscriber growth fell short.
Shares rose nearly 12% in premarket trading despite a 35% drop in the past year.
The company raised U.S. subscription prices to $12.99 and expanded into books and video content, while gross margins improved to 33.1%.
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Spotify supera los pronósticos de ganancias con un fuerte crecimiento de usuarios y precios más altos, impulsando las acciones a pesar de la caída del año pasado.