Spotify brought in more paying subscribers than had been predicted in the third quarter and made an unexpected profit, sending shares in the world’s most popular music streaming service up sharply yesterday.
The Swedish company’s shares rose by as much as 18.6 per cent after the results, adding $4 billion to its value. This put its market capitalisation at $25.7 billion, or $3.8 billion less than its initial valuation when it made its stock market debut.
Spotify reported the quarterly figures alongside an announcement that Barry McCarthy, who oversaw its first-of-a-kind “direct” listing in New York last year, will stand down as chief financial officer.
Spotify, founded in 2008, competes with Apple Music, Google Play Music, Amazon Music, Tidal and several others.