Spotify Posts First Ever Operating Profit, but Cautious Outlook for 2019

Spotify Posts First Ever Operating Profit, but Cautious Outlook for 2019
A speaker with the Spotify logo is pictured in the cafeteria of the company headquarters in Stockholm in a file photo from 2015. Jonathan Nackstrand/AFP/Getty Images
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Spotify posted its first-ever quarterly operating profit on Feb. 6 driven by a strong gross margin and slower-than-expected headcount growth, but it warned of a loss in 2019 and issued modest forecasts which disappointed investors.

The world’s most popular paid music streaming service, which has said it prioritizes growth over profitability, posted fourth-quarter sales in line with expectations and said it had seen growth in most of its markets.