Spotify forecasts strong profit as AI features start to pay off, shares surge
Spotify forecast fourth-quarter operating income of 820 million euros ($920.53 million), above analysts' average estimate of 813.4 million euros compiled by LSEG, banking on its AI-powered features to drive user growth ahead of the holiday season, and its shares rose more than 9% in early trading to their highest since January. The company forecast an increase of about 10 million premium subscribers for the fourth quarter to 316 million, above expectations of 314.7 million, while third-quarter revenue was 4.97 billion euros against an LSEG estimate of 4.98 billion euros.