Spotify (NYSE:SPOT) shares jumped nearly 19% following the company’s reported Q4 results on Tuesday, highlighted by a rising number of monthly active users and a margin beat. Q4 EPS was (EUR1.40), worse than the Street estimate of (EUR1.28). Revenue came in at EUR3.17 billion, slightly missing the Street estimate of EUR3.18 billion.

The company reported an increase of 20% in monthly active users (MAUs) to 489 million, better than the Street estimate of 478.5 million.

In addition, given the lower podcast content spend as well as continued strength in the core music business, SPOT exceeded its original 4Q/22 gross margin guidance by 80bps, while projecting steady margin improvement throughout 2023.

While the quarterly results were mixed, the company offer more upbeat guidance for Q4, specifically, it expects to reach 500M MAUs, including 207M premium subscribers.