(Reuters) – Spotify on Wednesday reported quarterly revenue above analysts’ estimates of higher ad revenue and new subscribers to the premium service, sending shares of the audio streaming platform up about 5%.
The company has bet big on podcasts, investing more than a billion dollars in buying shows like “The Joe Rogan Experience” in an attempt to lure users into a growing non-musical audio segment.
“Overall podcast consumption is strong and increasingly adherent,” Chief Executive Daniel Ek said during a conference call with investors.
Total monthly active users rose 19% to a record 422 million in the first quarter.
The Swedish company reported a 24% increase in revenue to €2.66 billion. Analysts, on average, had expected revenue of 2.62 billion euros, according to IBES data from Refinitiv.
The company now expects total monthly active users of 428 million in the second quarter, following the closure of its Russian operations and reversing the loss of users following a service outage in March.
Spotify forecasts second-quarter revenue of €2.8 billion, compared with estimates of €2.81 billion.
Premium subscribers, which account for the majority of the company’s revenue, increased from 158 million to 182 million, while advertising-supported revenue increased by 31% to 282 million euros.
(Reporting by Akash Sriram in Bengaluru and Dawn Chmielewski)