Spotify Q3 Results

Investing.com — Spotify reported third-quarter results on Tuesday that fell short of Wall Street estimates. However, the Swedish audio streaming giant's improved margins amid cost-cutting efforts overshadowed the miss.

Spotify Technology SA (NYSE:SPOT) saw a 9% increase in after-hours trading.

Financial Highlights:

• Q3 EPS: €1.45
• Revenue: €3.99 billion
• Wall Street Estimates: EPS $1.68; Revenue $4.02B

Gross margin improved to 31.1% in Q3, compared to 26.4% a year earlier.

Monthly active users grew 11% to 640M in Q3 compared to the previous year.

Future Guidance:

• Monthly active users projected at 665M
• Gross margin expected to reach 31.8%
• Revenue forecasted at €4.1B