Spotify monthly active users: Spotify reported quarterly monthly active users (MAU) of 615 million on Tuesday, falling short of its own projections. The Swedish music-streaming company attributed this shortfall to reduced spending on marketing initiatives aimed at attracting new listeners.

Although first-quarter MAUs increased by 19 per cent, they failed to meet Spotify's internal guidance and the median of analysts' forecasts, which anticipated 618 million users.

Premium subscribers, constituting the majority of the company's revenue, grew by 14 per cent to reach 239 million, aligning with estimates based on IBES data from LSEG.

In a bid to improve margins and profitability, Spotify has implemented cost-cutting measures, including layoffs and reductions in its marketing expenditure.

During the quarter, gross margins expanded to 27.6 per cent from 25.2 per cent year-on-year, partly driven by improved profitability in its podcasting business. Notably, Spotify achieved a gross profit exceeding 1 billion euros in a single quarter for the first time.

Celebrating its 18th anniversary, Spotify's CEO Daniel Ek remarked, "We have talked about 2024 as the year of monetisation and we are delivering on that ambition."

The company's quarterly revenue surged by 20 per cent to 3.64 billion euros ($3.89 billion), surpassing analysts' expectations of 3.61 billion euros.

(With Reuters inputs)