Spotify forecasts €670 million Q3 profit, rolling out AI tools
Spotify says its Q3 profit will be €670 million, just under what analysts expected, after reporting slowing user growth in Europe and North America.
With rivals like YouTube, Netflix, and AI music startups like Udio and Suno heating up the competition, Spotify is rolling out fresh AI tools like "Personal Podcasts" and a new offering called "Reserved" to keep things interesting.
Spotify expects €5 billion revenue Q3
Last quarter, Spotify actually beat profit estimates thanks to strong revenue growth and lower payroll taxes. Still, overall revenue was just shy of predictions at €4.78 billion.
Looking ahead to Q3, Spotify expects €5 billion in revenue with 788 million monthly listeners (a bit below forecasts) and 305 million premium subscribers, which matches market hopes.
Even with a 16% drop in its stock this year, Spotify seems upbeat about growing both its user base and earnings moving forward.