Spotify (NYSE:SPOT) saw a notable increase of over 13% in its stock price during pre-market today after reporting better-than-anticipated earnings and gross margin for Q2/24.

The streaming giant posted an EPS of €1.33, surpassing the Street forecast of €1.05. However, revenue for the quarter was slightly below expectations, coming in at €3.81 billion compared to the estimated €3.82 billion. Premium revenue was recorded at €3.35 billion, marginally above the €3.34 billion estimate.

The company’s gross margin for the second quarter stood at 29.2%, exceeding the Street estimate of 28.1%.

Monthly active users (MAUs) were reported at 626 million, falling short of the projected 631.46 million. Similarly, ad-supported MAUs were 393 million, below the expected 397.71 million.

For the third quarter of 2024, Spotify forecasts revenue of €4 billion, which is significantly lower than the Street estimate of €4.365 billion.