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Spotify posted strong performance in Q3

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Spotify, the world’s leading music streaming service, reported its third-quarter results on Wednesday. Displaying a strong performance, the company recorded its sixth net profit. Despite its success in the online music market, Spotify has yet to post a full-year profit since going public in 2018.

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This is the company’s sixth net profit since going public in 2018. The number of active users reached 381 million (+19% year-over-year) at the end of September. According to the group’s business report, paid subscribers account for 172 million of total revenue (+19% also).

The company therefore met the analysts’ expectations and its July target of 377 to 382 million paying users (up from 170 million).

Located in Stockholm, but listed on the New York Stock Exchange, Spotify hopes to pass 400 million users by the end of the year ((from 177 to 181 millions paying users).

It generated a net profit of 2 million euros in the July-September period, while analysts had expected a loss.

No net profit for the year.

“We experienced another quarter of strong advertising growth and user engagement indicators in many markets have shown encouraging signs of growth,” the group reported.

At this time last year, the group reported a loss of 101 million euros, largely due to higher operating expenses.

The company reported revenue of €2.5 billion for the quarter, up nearly 27 percent year-over-year.

A year after going public in 2018, Spotify has yet to post a full-year profit despite its success in the online music market.

The Swedish online music giant tripled its net loss to €581 million last year. It was mainly due to the performance of its stocks.

As part of its policy, Spotify compensates its employees by indexing their salaries to the stock market.

Spotify’s stock rose 4% in early trading during Wednesday’s session.

For MetaNews.

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