Spotify Technology (NYSE:SPOT) reported fiscal first-quarter 2024 earnings on Tuesday that exceeded analyst expectations on both revenue and profits.
The audio streaming giant also swung to profitability as its recent "efficiency" strategy starts to pay off.
For Q1, Spotify posted an operating income of €168 million ($179 million), compared to an operating loss of €156 million in the prior year period.
However, this fell slightly short of the company's guidance of €180 million operating income due to higher than anticipated social charges related to share price appreciation during the quarter.
Despite the minor guidance miss on profits, Spotify issued a strong outlook for Q2.
It guided for an operating income of €250 million, well above Wall Street consensus expectations. Its Q2 revenue guidance of €3.8 billion also came in higher than the €3.76 billion analysts projected.
The better-than-expected results come as Spotify has implemented cost-cutting measures over the past year, including multiple rounds of layoffs, price increases, and a more disciplined approach to investments after spending heavily to build out its podcast business.