Spotify Technology reported a record net income of €274 million ($298 million) for the second fiscal quarter, smashing analysts’ estimates. This resulted in earnings of €1.33 ($1.44) per share, compared to forecasts of €1.04 euros per share. Operating income for the quarter stood at €266 million, a stark contrast to the €247 million loss recorded during the same period a year prior. This also beat the company guidance of €250 million.
As a result of this financial performance, stocks in the music streaming company have surged, with Spotify shares gaining over 50% since the start of the year while rising 70% on a year-over-year basis.
The company’s financial success is largely tied to its spike in active users. Spotify’s total monthly active users for the quarter were 626 million; a 14% improvement from a year ago. Premium subscribers clocked in at 246 million, beating company expectations of 245 million and rising 12 from the previous year.
Looking toward the future, Spotify is focused on absolute growth. Having spent $1 billion over the past four years on podcast deals and studio acquisitions, Spotify announced that it is aiming to be more intentional in its spending, focusing more on distribution as opposed to exclusivity.