Spotify pops 10% on strong user growth, earnings beat

Core Insights - Spotify's ad-supported user base reached 476 million, exceeding the expected 468.9 million [1] - Monthly active users increased by 11% year-over-year to 751 million, surpassing the 744.7 million forecast [1] - Paid subscribers rose by 10% year-over-year to 290 million [1] User Growth and Features - Growth in user additions was attributed to expansion in Latin America, Europe, and improvements in the mobile free tier [1] - The company launched audiobooks in new markets and introduced music videos for premium users, along with enhanced AI tools in Q4 [2] Financial Performance - Net income increased to 1.17 billion euros, or 4.43 euros per share, compared to 367 million euros, or 1.76 euros per share, in the previous year [3] - For the current quarter, Spotify anticipates revenue of 4.5 billion euros, which is below the 4.58 billion euros estimate, impacted by a 670 basis point headwind from foreign exchange rates [4] Future Projections - Spotify expects to grow monthly active users by 8 million to reach 759 million, exceeding the 752.4 million estimate [4] - Total premium subscribers are projected to reach 293 million [4]