Spotify tops third-quarter estimates on strong user growth, issues mixed guidance

Core Insights - Spotify reported strong third-quarter results with total revenue increasing by 12% year over year, reaching 4.27 billion euros, surpassing Wall Street expectations of 4.23 billion euros [1][3] - The company experienced a 12% increase in premium subscribers, totaling 281 million, slightly below the expected 281.24 million [1][3] - Despite the positive quarterly results, Spotify issued weak guidance for revenue and subscribers for the current quarter, leading to a 2% decline in shares [1] Revenue and Earnings - Earnings per share were reported at 3.28 euros, significantly higher than the expected 1.97 euros [3] - The revenue growth reflects the company's pricing strategy, which included a subscription price hike in August from 10.99 euros to 11.99 euros across multiple markets [2] Leadership Changes - CEO Daniel Ek announced he will transition to the role of executive chairman in January, with co-presidents Gustav Söderström and Alex Norström set to take over his position [2]