Music streaming giant Spotify on Monday reported a swing to a third-quarter operating profit and said it grew its user base to 113 million premium, or paid, subscribers and 248 million total active monthly users as of the end of September, according to The Hollywood Reporter.
That compared with 108 million premium and 232 million total active monthly users as of the end of June, 100 million premium and 217 million monthly users as of the end of March and 96 million and 75 million, respectively, as of the end of 2018.
The company's third-quarter user figures exceeded Wall Street estimates. "Net subscriber growth exceeded our expectations and was led by strong performance in both Family Plan and Student Plan," leaving premium subs up 31 percent over the year-go period, the firm said. "Total monthly active users grew 30 percent ..., outperforming the high end of our guidance. Developing regions continue to be a significant driver of this outperformance."
The company, led by Spotify CEO Daniel Ek, swung to a third-quarter operating profit of $59.9 million (54 million euros), compared with an operating loss of 6 million euros in the year-ago period. Net income rose from 43 million euros to $267.4 million (43 million euros). Quarterly revenue rose 28 percent to $1.92 billion (1.73 billion euros), while operating expenses increased 11 percent.
The company also announced transition plans for a new CFO. "After playing a pivotal role in Spotify’s listing and helping to establish Spotify as a public company, Barry McCarthy will retire from Spotify on January 15, 2020, stepping down as the company’s CFO," the company said. He will be replaced by Paul Vogel, who is currently Spotify’s vp of Financial Planning & Analysis, treasury and investor relations.