Spotify Q4 results: Revenue up 16% at $3.94 bn, user growth beats estimates

Spotify on Tuesday reported fourth-quarter monthly active users and subscribers ahead of expectations as it grew in all regions, and said revenue and profitability trends looked favourable this year, sending its shares up 8%.

The Swedish music streaming company has ventured into podcasts and audiobooks as it seeks to grow its user base to 1 billion by 2030. It has also raised prices for its subscribers and laid off thousands of employees to boost profits.

The number of monthly active users rose by 23% to 602 million in the fourth quarter, beating Spotify’s guidance and analysts’ forecasts of 601.33 million.