LONDON - Spotify reported quarterly results broadly in line with analyst expectations on Tuesday, but failed to meet its own target for user growth.

The Swedish audio-streaming giant sought to reduce costs through layoffs and cuts to its marketing budget last year, while trying to grow its user base through promotions and new investments in podcasts.

Revenue rose to 3.81 billion euros ($4.14 billion) for the second quarter of 2024, fractionally below analysts' estimates of 3.82 billion euros, according to IBES data from LSEG.

Spotify previously said it aimed to reach 631 million monthly active users (MAUs). The company fell short of this target, however, attracting 626 million MAUs for the quarter.

The company said it had seen user numbers grow across all regions, but that it had not met its MAU goal due to "continued recalibration" of marketing activities.

Profit grew steadily to 1.11 billion euros, slightly above analysts' expectations for 1.07 billion euros.

Spotify's gross profit margin widened to 29.2% from 27.6% in the previous quarter.

  - Reuters