Spotify Beats Q3 Forecasts, Expands Netflix Partnership

Benzinga

Spotify beat expectations with 713 million monthly active users and $4.9 billion in revenue, though ad-supported revenue declined. CEO Daniel Ek will step down to become executive chairman, while Gustav Söderström and Alex Norström will take over as co-CEOs. Spotify expanded its video strategy through a partnership with Netflix and remains the No. 2 podcast platform in the U.S.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Spotify reported stronger than expected third quarter results as monthly active users climbed 11% year-over-year to $713 million,

00:09topping analysts' forecasts, according to Bloomberg.

00:11Revenue rose 7% to $4.9 billion, while ad-supported revenue dropped 6% amid pricing pressure.

00:17Pre-year's descriptions were roughly in line with estimates.

00:20CEO Daniel Ekmel stepped down at year's end to become executive chairman,

00:23with Gustav Soderstrom and Alex Nordstrom taking over as co-CEOs.

00:27When Spotify expanded its video strategy through a new partnership with Netflix to stream select video podcasts,

00:32it now rakes second in U.S. podcast popularity beyond YouTube, according to Edison Research.

00:37Shares rose less than 1% in Wednesday morning trading.

00:39For all things money, visit Benzinga.com.

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