Shares of audio-streaming platform Spotify Technologies (NYSE: SPOT) jumped on Tuesday after the Swedish company reported financial results for the first quarter of 2024. As of 9:40 a.m. ET, Spotify stock was up 13% and hitting new 52-week highs.

Spotify ended Q1 with 615 million monthly active users, which was slightly below analysts' expectations and management's guidance. That said, this still represented strong 19% year-over-year growth. Moreover, its premium subscriber base grew a healthy 14% to 239 million users.

Most of Spotify's revenue comes from its smaller base of premium subscribers. The company's revenue consequently rose 20% year over year to 3.6 billion euros, or almost $3.9 billion. And investors are also encouraged by its gross margin improvement. Its gross margin was just 25% in the prior-year period but jumped to almost 28% in Q1.

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Source Fool.com