The stock of Spotify Technology (SPOT) is up 14% after the audio streaming giant reported a record profit for this year’s second quarter.
The Swedish company, known for its music and podcast streaming service, reported earnings per share (EPS) of 1.33 euros ($1.44 U.S.), which beat Wall Street estimates of 1.06 euros. The profit was a quarterly record.
Spotify also announced that its revenue rose to 3.81 billion euros ($4.14 billion U.S.), which was in line with analysts' estimates.
Despite the record profit and jump in its share price, Spotify missed its internal target for monthly active users (MAUs) on its streaming platform.
Spotify reported 626 million MAUs for Q2 of this year, below its target of 631 million. Management blamed the miss on a “continued recalibration of marketing activities.”
Spotify has slashed costs this year through layoffs and by reducing its marketing budget. At the same time, the company has tried to grow its user base through promotions and new podcasts.
The company did report a gross profit margin of 29.2% for Q2. That was up from 27.6% in the previous first quarter of the year.
Prior to today (July 23), the stock of Spotify had risen 80% over the last 12 months to trade at $295.45 U.S. per share.
