Spotify reported its first quarterly profit since 2021, with a third-quarter operating income of 32 million euros. This success was attributed to higher gross margins and reduced expenses in marketing and personnel. The company’s Chief Financial Officer, Paul Vogel, expressed optimism about future growth in operating income.

Despite investing over a billion euros

in expanding its podcast business, Spotify has been diligent in controlling costs. This includes a 6% reduction in its workforce and price increases for premium plans.

During the third quarter, Spotify’s gross margin increased to 26.4%, with expectations of further expansion in the coming year. The monthly active user base saw a 26% surge to 574 million, exceeding both the company’s projections and analyst expectations. Premium subscribers, the primary

source of revenue, grew by 16% to 226 million.

Revenue for the quarter reached 3.36 billion euros, surpassing estimated figures. Spotify’s forecast for the fourth quarter puts it on track to achieve 1 billion users and annual revenue of $100 billion by 2030,

surpassing initial expectations. Premium subscribers are expected to reach 235 million in the final quarter, with revenue hitting

3.7 billion euros, again exceeding analyst forecasts.