Spotify Q1 Revenue Hits $3.95B, Profits Surge, Despite Layoff Concerns

Spotify's recent financial results show a significant increase in revenue and profits, despite the CEO's unexpected reaction to the impact of major layoffs. The company reported a 20% year-over-year increase in Q1 revenue, reaching $3.95 billion, with earnings per share (EPS) of $1.05, surpassing the consensus estimate of $0.70. This financial performance led JP Morgan to raise Spotify's price target from $320, and analysts were impressed with the company's performance. Despite the financial success, Spotify's CEO Daniel Ek expressed surprise at the negative operational impacts following the layoff of 1,500 employees, a move he described as the 'right strategic decision'. Additionally, Spotify announced record profits exceeding €1 billion, and the company's stock value increased by more than $5 billion in a single day.