That move sent the stock from $121 per share to $152 per share during the month. For context, the stock had traded as high as $155 in February before the COVID-19 panic began in the U.S. and bottomed around $118 per share in March.
The big news in April was Spotify's first-quarter earnings report, which was released last Wednesday. The company grew monthly active users (MAUs) by 31% to 286 million, premium subscribers by 31% to 130 million, and ad-supported MAUs by 32% to 163 million.
Total revenue grew 22% to over 1.8 billion euros, while gross margin expanded by 0.8% to 25.5%. Remarkably, the subscriber cancellation, or churn, rate improved by 0.7% year-over-year despite the global pandemic. And of those who do cancel, about 70% return to Spotify within 45 days.
These results were a welcome relief for Spotify shareholders because it hadn't been clear how Spotify's business would hold up while so many people remain housebound. Certainly, Spotify usage in the car has plummeted because far fewer people are commuting these days. On the other hand, Spotify usage has exploded by over 50% on TVs and gaming consoles as more people listen at home.
The company's management team was bullish on the company's two-sided marketplace initiative, whereby labels and artists to promote new music to Spotify users. In the past, Spotify CEO Daniel Ek has referred to this business as having "software-type margins," which are very high.