Shares of Spotify (NYSE: SPOT) gained over 8% in morning trading on Tuesday after the company’s monthly active users (MAUs) jumped 20% year-over-year to 489 million. The streaming company reported revenues of €3.17 billion, an increase of 17.5% year-over-year in Q4 beating Street estimates of €3.16 billion.
However, loss per share came in at €1.40 in Q4 versus the consensus estimate of €1.27 per share.
The user metrics were encouraging for the company as there were net additions of 33 million MAUs during Q4- a record high for Spotify. The company’s paid subscribers increased 14% year-over-year to 205 million paid subscribers.
Earlier this month, Spotify announced a broader organizational restructuring with the reduction of 6% of its workforce and stated that Chief Content & Advertising Business Officer Dawn Ostroff would transition to the role of Senior Advisor while eventually leaving the company.
Overall, Wall Street analysts are cautiously optimistic about SPOT stock with a Moderate Buy consensus rating based on seven Buys, and six Holds.