10:55 AM EDT, 07/23/2024 (MT Newswires) -- Spotify Technology ( SPOT ) swung to a higher-than-expected second-quarter profit as the audio streaming company's premium subscription growth beat estimates.

The company reported net income of 1.33 euros ($1.44) a share for the June quarter, compared with a loss of 1.55 euros the year before. The consensus on Capital IQ was for per-share earnings of 1.05 euros. Revenue jumped 20% year over year to 3.81 billion euros, largely in line with the Street's view.

Premium revenue climbed 21% to 3.35 billion euros driven by average revenue per user growth of 8% and a 12% increase in subscribers to 246 million, which topped the 245.2 million estimate on Visible Alpha. Ad-supported revenue advanced 13% to 456 million euros.

Spotify's ( SPOT ) New York Stock Exchange-listed shares gained 13% in Tuesday trading.

Total monthly active users, or MAUs, rose 14% to 626 million, reflecting growth across all regions. The MAU count trailed the company's own guidance by 5 million, while the consensus on Visible Alpha was for 631.4 million.

"Our business continued to perform well in (the second quarter), led by healthy subscriber gains, improved monetization and record profitability," Spotify ( SPOT ) said in a shareholder deck. "Although we did see another quarter of MAU variability, funnel conversion remained strong, particularly in developed markets where we recently adjusted pricing."

The music streamer expects to add roughly 13 million net new MAUs in the third quarter, bringing the total to 639 million. The company expects its premium subscribers to increase by 5 million in the period to 251 million. The consensus on Visible Alpha is for 250.6 million premium subscribers.

"We are continuing to make adjustments to our marketing activities and also exploring potential product enhancements, both of which we anticipate will contribute to improving MAU through the back half of the year," interim Chief Financial Officer Ben Kung said during an earnings call, according to a Capital IQ transcript.

For the ongoing quarter, Spotify ( SPOT ) anticipates reporting revenue of 4 billion euros, including a foreign-exchange headwind of 100 basis points. The Street is looking for 4.06 billion euros.

Price: 331.26, Change: +35.81, Percent Change: +12.12