Spotify has reached 100 million paid subscribers, a first for any music service, adding more customers in the latest quarter than analysts expected and boosting confidence the company has lots of room to grow.
Spotify Technology SA took on 4 million customers in the quarter, compared with the 3.3 million forecast by analysts. The stock jumped 4.5% in premarket trading.
Last quarter, Spotify doubled down on its podcast bet with two strategic acquisitions — Gimlet Media Inc. and Anchor — hoping to drive subscriber growth through mediums outside of music as record labels have begun demanding more money. And since last reporting financial results, the streaming service bought podcast studio Parcast for an estimated $100 million.
Spotify was projected to report about 218.3 million monthly active users and 99.3 million premium subscribers, according to estimates compiled by Bloomberg News. Though the premium figure topped expectations, total users fell just short at 217 million.
Shares of the music streaming service have rallied 22% so far this year, compared with a 17% gain in the S&P 500.
The company garnered over a million users in India within a week of its launch in March this year.