STOCKHOLM - Spotify on Tuesday reported quarterly monthly active users (MAU) of 615 million, missing its own estimates, as the Swedish music streaming company spent less on marketing activities to draw in more listeners.

First-quarter MAUs rose 19%, but missed Spotify's own guidance and a median of analysts' forecasts of 618 million.

Premium subscribers, who account for most of the company's revenue, rose by 14% to 239 million, in line with estimates, according to IBES data from LSEG.

Spotify has been cutting costs, including through layoffs and its marketing budget, as it looks to increase margins and profits.

Gross margins rose to 27.6% in the quarter from 25.2% a year earlier, helped partly by higher profits in its podcast business. Its gross profit also crossed 1 billion euros in a quarter for the first time.

Spotify celebrates its 18th birthday on Tuesday.

"We have talked about 2024 as the year of monetization and we are delivering on that ambition," CEO Daniel Ek said in a statement.

The company's quarterly revenue rose 20% to 3.64 billion euros ($3.89 billion), beating estimates of 3.61 billion euros.

  - Reuters