Derek Saul is a New Jersey-based Senior Reporter on Forbes' news team. He graduated in 2021 from Duke University, where he majored in Economics and served as sports editor for The Chronicle, Duke's student newspaper, joining Forbes soon thereafter.
Shares of Spotify erupted Tuesday after the audio streaming service delivered robust earnings, as the company seeks to achieve a rarity in the streaming space: Sustained profitability. Spotify stock leapt 14% in early trading, which would be its largest daily percentage rally since October 2019 and second-best day in the Sweden-based company’s six years on the New York Stock Exchange.
Spotify’s premarket share price of $337 would be its highest intraday share price since February 2021.Its record 246 million paid subscribers was above analyst estimates of 245.3 million, according to FactSet, its record $1.44 earnings per share smashed forecasts of $1.14, and its $4.1 billion of revenue was just below expectations of $4.15 billion.
Perhaps most eye popping was Spotify’s $532 million in second-quarter free cash flow, shattering estimates of $363 million and representing 4,700% year-over-year growth from Q2 2023’s $11 million in the metric which measures how much money a company actually made after expenses in a period. With more than $500 million in net income booked in Spotify’s first two quarters and a further $630 million projected over the second half of the year, Wall Street now expects the streamer to easily tally its first-ever profitable year, turning around from 2022’s $467 million loss and 2023’s $572 million loss.We’re launching text message alerts so you'll always know the biggest stories shaping the day’s headlines. Text “Alerts” to 335-0739 or sign up330%.
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