Spotify forecasts €820 million Q4 operating income, credits AI features
Spotify just shared its fourth-quarter operating income forecast: €820 million ($920.53 million), topping what Wall Street expected.
The boost comes from Spotify's AI-powered features, which are designed to keep users more engaged, especially with the holidays coming up.
It's a sign that Spotify is betting big on tech to stay ahead.
Spotify last quarter revenue misses estimates
Spotify is leaning into AI to help users discover more music, aiming to stand out from new music-making platforms like Suno and Udio.
In the last quarter, it hit €672 million in operating income and brought in €4.97 billion in revenue, with operating income right on target with analyst predictions and revenue slightly below them.
Co-CEO Alex Norstrom says his focus is on growing smartly while keeping costs in check, all part of making sure Spotify keeps its edge and keeps expanding.