Audio streaming service Spotify has released its first-quarter earnings results. The results released on Wednesday surpassed the expectations of analysts. The quarter saw the company grow in advertising income and user subscriptions. The company’s shares were up about 5 percent before the bell.
For the first quarter, Spotify reported a 24 percent growth in revenue to 2.66 billion euros or $2.82 billion. Analysts had projected revenue for the quarter to come in at 2.62 billion euros.
The company said the share of podcasts in content consumption on its platform increased by double digits and even hit a new all-time high in the quarter.
The company’s guidance for total active monthly users is 428 million in the second quarter. This guidance considers the fact that the company halted its operations in Russia as well as the reversal of a loss of users after a service outage that occurred in March. The company expects revenue for the second quarter to come in at 2.8 billion euros slightly short of analysts’ estimates of 2.81 billion.
In the quarter, premium subscribers who make up a major part of the company’s revenue grew to 182 million from 158 million. Advertisement-supported revenue grew 31 percent to 282 million euros.
Total monthly active users rose 19% to a record 422 million in the first quarter ending March 31.
Spotify has a huge belief in podcasts and has invested more than a billion dollars in acquiring shows such as the “The Joe Rogan Experience” and its Other Businesses category. It hopes to grow its non-music audio segment. During the call with analysts, CEO Daniel Ek said that “Overall podcast consumption is strong and increasingly sticky.”
Swedish-based Spotify competes majorly with America’s Apple Music and France-based Deezer in the audio streaming space. Spotify provides millions of songs and podcasts for users to enjoy.