Spotify reported quarterly revenue of nearly 5 billion euros ($5.6 billion), up 16% year over year, with premium revenue rising 17% to nearly 4.5 billion euros. Monthly active users grew 11% to 788 million and premium subscribers rose 9% to 306 million. Attributable net income fell to 518 million euros ($580 million) from 899 million euros a year earlier, though the article notes the prior-year result was boosted by large finance income and a 72 million euro ($81 million) tax benefit. Operating income reached 672 million euros ($753 million), above guidance, gross margin hit a record 33%, and free cash flow was 735 million euros ($823 million). For the fourth quarter, management guided to revenue of about 5.2 billion euros ($5.8 billion) and operating income of 820 million euros ($919 million), while the author views the high valuation (forward P/E near 52) as justified by the company's strengthening position.
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