Spotify went public earlier this year, and the decision to do appears to have been a wise one.
The music streaming service has shared its quarterly earnings for Q3 of 2018, which ended in September, posting an estimated revenue of €1.352 billion or $1.54 billion.
The figure surpasses analysts estimates, according to TechCrunch, which were slightly lower at $1.51 billion.
Added to this is an increase of nearly 31 percent in revenues compared to the same quarter last year. This significant jump is also having a positive effect on the company’s operating loss which now sits at roughly €6 million.
That’s still a sizeable figure, but seeing how Spotify was able to reduce its operating loss by 92 percent over the space of 12 months, they should be operating at a profit quite soon if the recent trajectory is anything to go by.
Interestingly though, investor confidence in Spotify is not on the up, unlike its revenue. Share prices are down 3 percent at the time of writing and sit at $145 per share.
Part of this lack of investor optimism could be down to the fact that Spotify has cautioned a few events in the future that could affect their margins, most notably being a deal with Google to offer Home Mini speakers with the streaming platform during the holiday season.
We’re not investment bankers, nor do we have the stock market all figured out, but we reckon those upcoming hiccups should be overcome relatively quickly, as Spotify has quickly become the go-to service when it comes to listening to music.
It’s popularity then should prove capable of riding out any bumps on the road. As such, it may be worthwhile picking up some Spotify shares should you have a few spare shekels lying around.
If not, you can still enjoy Spotify locally.