Spotify’s shares soared 9 percent at the start of trading today (Jan. 31), to $109, after the company reported adding 33 million monthly active users in the three months ending Dec. 31. It now has a total of 489 million—a record high for the company. The net addition was 10 million more than analysts expected.
Spotify also earned 10 million new paying subscribers in the last three months, bringing its total to 205 million. It is the first music streaming service to pass the 200 million subscriber benchmark.
The stock is still less than one-third what it was worth at its peak in February 2021, when it clocked a high of $366 per share. It took a sharp hit this time last year after Spotify failed to expand its profit margins and its revenue growth slowed.
Spotify announced it would lay off 600 workers, or 6 percent of its workforce Jan. 23. Its operating expenses grew at twice the rate its revenue in 2022, which sparked the need to cut costs. The company blamed personnel costs and currency fluctuations.