Why Spotify Stock Is Soaring After Q1 Earnings
Spotify beat expectations for the first quarter and its stock is notably higher following the report. Here's why.


Spotify (SPOT) stock jumped more than 14% out of the gate Tuesday after the audio streaming and media company beat analysts' top- and bottom-line estimates for its first quarter.
In the three months ended March 31, SPOT reported year-over-year revenue growth of 19.5% to 3.6 billion euros thanks in part to recent price increases. The company also swung to a net profit of 97 euro cents per share vs a per-share loss of 1.16 euros in the year-ago period.
These results exceeded the consensus analyst estimate of 3.61 billion euros in revenue and earnings of 65 euro cents per share, according to CNBC.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Spotify also reported monthly active users (MAUs) of 615 million, representing an increase of 19.4% from the year-ago period and 2.2% from the prior quarter. Premium subscribers of 239 million were up 13.8% from the year-ago period and 1.3% from the prior quarter.
Spotify's premium subscribers result met its guidance for the quarter, but its MAUs result fell just shy of its guidance of 618 million.
"The business performed well in Q1, led by healthy subscriber gains, improved monetization and record strength in profitability," Spotify said in its earnings release. "Overall, we are encouraged by the strong start to the year and view the business as well positioned to deliver on the goals outlined at our 2022 Investor Day."
UBS sees more upside for Spotify
UBS Global Research analyst Batya Levi is bullish on the communication services stock, as evidenced by a Buy rating and a $375 price target, representing implied upside of nearly 19% to current levels.
"We expect SPOT to generate mid-teens revenue growth as subscriber momentum continues and price increases flow through," Levi wrote in an April 4 report. "We believe the company is on pace to show roughly 90 basis points of annual gross margin expansion, driven by stronger ad-supported margins and improvement in non-royalty expenses."
According to S&P Global Market Intelligence, the consensus analyst target price for Spotify stock is $270.04, which is about 12% below its current trading price. However, these estimates could be updated in the days and weeks ahead following the strong earnings results. Additionally, the consensus recommendation is Buy.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
The Most Tax-Friendly States for Investing in 2025 (Hint: There Are Two)
State Taxes Living in one of these places could lower your 2025 investment taxes — especially if you invest in real estate.
-
Want To Retire at 55? See If You Can Answer These Five Questions
Who said you can’t retire at 55? If you say yes to these questions, you may be on your way to an early retirement.
-
Potential Trouble for Retirees: A Wealth Adviser's Guide to the OBBB's Impact on Retirement
While some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expenditures.
-
One Small Step for Your Money, One Giant Leap for Retirement
Saving enough for retirement can sound as daunting as walking on the moon. But what would your future look like if you took one small step toward it this year?
-
This Is What You Really Need to Know About Medicare, From a Financial Expert
Health care costs are a significant retirement expense, and Medicare offers essential but complex coverage that requires careful planning. Here's how to navigate Medicare's various parts, enrollment periods and income-based costs.
-
I'm a Financial Planner: Could Partial Retirement Be the Right Move for You?
Many Americans close to retirement are questioning whether they should take the full leap into retirement or continue to work part-time.
-
From Mortgages to Taxes to Estates: How to Prepare for Falling Interest Rates
As speculation grows that the Federal Reserve will soon start lowering interest rates, now is a good time to review your financial plans for housing, estate, taxes, investing and retirement to make the most of potential changes.
-
This Is How Lottery Winners Build Lasting Legacies, From a Financial Professional
Winning a massive lottery jackpot, like the recent $1.4 billion Powerball, requires seeking immediate legal and financial counsel, protecting your identity and winnings and planning your legacy.
-
S&P 500 Slips Ahead of Fed Week: Stock Market Today
All eyes are on the Federal Reserve ahead of next week's critical policy meeting.
-
September Fed Meeting: Live Updates and Commentary
The September Fed meeting is a key economic event, with Wall Street keyed into what Fed Chair Powell & Co. will do about interest rates.