Key facts
- Spotify expects fourth-quarter operating income of €820 million.
- Third-quarter revenue was €4.97 billion.
- Third-quarter operating income was €672 million.
Spotify forecast fourth-quarter operating income above Wall Street estimates on Thursday, as the music streaming company bets on its AI-powered features to drive user growth. The company expects operating income of €820 million ($920.53 million), compared with analysts' average estimate of €813.4 million. Investors are monitoring profitability as Spotify invests in AI to improve discovery and engagement, aiming to attract more users and compete with rivals like Suno and Udio. In the third quarter, Spotify reported operating income of €672 million, in line with estimates, and revenue of €4.97 billion, slightly below estimates of €4.98 billion. Co-CEO Alex Norstrom stated that the company has built a strong, compounding business with moderating costs and growth runway.