Spotify Technology delivered solid first-quarter growth, adding premium subscribers and reporting sharply higher profits as the streaming platform raised prices and expanded its content offerings.
Monthly active users climbed 12% to 761 million, beating the company’s guidance of 759 million. Premium subscribers grew 9% to 293 million, hitting expectations.
The Swedish company posted net income of €721 million ($845 million), or €3.45 per share — well above last year’s €225 million, or €1.07 per share. Analysts had forecast roughly €3.11 per share, according to FactSet.
Spotify has continued broadening its platform with more audiobooks, podcasts, user messaging, and personalized music discovery features. In January, it raised the U.S. premium subscription price to $12.99 a month from $11.99.
On Monday, the company announced a partnership with Peloton Interactive, offering premium subscribers more than 1,400 ad-free on-demand fitness classes, including strength, cardio, and yoga. Free and premium users will also gain access to wellness creator content.
For the current quarter, Spotify expects monthly active users to reach 778 million and premium subscribers to hit 299 million.