Shares of Spotify Technology (NYSE:SPOT) are hitting a sweet note today thanks to a strong third-quarter earnings report. The music-streaming veteran's stock rose as much as 18.4% earlier this morning and still trades 14.2% higher as of 12:10 p.m. EDT.
In the third quarter of 2019, Spotify reported earnings of $0.42 per diluted share on revenue of $2 billion. That's a 62% year-over-year increase on the bottom line on 34% stronger sales. These growth rates include a 4% currency translation tailwind, as the U.S. dollar rose that much in comparison to the euro, which is the Swedish company's reporting currency. The number of monthly average users rose 30% year over year to 248 million and premium subscribers increased by 31% to 113 million.
Spotify's strong growth rested chiefly on high interest in its premium podcast services. All of these figures landed at or above the top end of management's guidance for the third quarter.
CFO Barry McCarthy also chose this moment to announce his retirement from his post, effective Jan. 15, 2020. The former Netflix CFO will stay connected to Spotify as a board member, having achieved the goals of taking Spotify public and setting up a solid successor.
A CFO transition is often enough to spark a selling spree, especially in richly valued growth stocks like Spotify. The complete lack of trader panic today is a testament to Spotify's fantastic financial results.