reported a wider loss than expected for its fourth quarter but also said user growth was strong, topping expectations.
(ticker: SPOT) booked a loss of €1.40 ($1.52) a share on revenue of €3.17 billion for the December quarter.
Analysts had expected a quarterly loss of €1.28 a share on revenue of €3.18 billion, according to FactSet.
However, the music-streaming platform reported 489 million monthly active users, up 20% from a year earlier and besting the company’s guidance of 479 million. The company said it had 205 million premium subscribers, beating expectations of 202 million.
shares were up 3% in premarket trading.
For the current quarter, Spotify forecast monthly active users of 500 million and premium subscribers of 207 million. It said it expects revenue to be €3.1 billion with an operating loss of €194 million.
Spotify has already said that it intends to cut 6% of its work force of about 10,000 as it pursues profitability.
Write to Adam Clark at firstname.lastname@example.org