Spotify shares jump after it hits 100 million paid subscribers for its premium service

Spotify Technology reported a better-than-expected rise in first-quarter revenue on Monday as the music streaming company hit 100 million paid subscribers for its premium service, sending its shares up nearly 5%.

The global leader in the sector, with double the number of subscribers of nearest rival Apple Music, Spotify has launched in regions like India, Middle East and North Africa in recent months, seeking to fuel the next stage of its development as it continues to price aggressively in the developed world.

Spotify said it had 217 million monthly active users (MAUs) in March, up from 173 million in the same quarter a year earlier. Analysts on average were expecting the company to have 218.6 million subscribers, according to research firm FactSet.

Premium or paying subscribers at the end of the quarter were 100 million, up from 75 million a year earlier. Analysts were expecting the company to have 99 million paid subscribers.

Revenue rose 33% to 1.51 billion euros ($1.69 billion), beating analysts’ estimates of 1.47 billion euros, according to IBES data from Refinitiv.

Europe contributed 40% of the total paid subscribers, followed by North America with 30%.

Spotify said it expects to have about 107 million to 110 million premium subscribers by the end of the current quarter.

Spotify also said it expects total revenue of 1.51 billion euros to 1.71 billion euros for the second quarter. Analysts were expecting it to forecast 1.62 billion euros.

The company reported a loss attributable to shareholders of 0.79 euros per share. Analysts were expecting a loss of 0.35 euros per share.