What drove Spotify's gross profit surge in Q3 2024?

Spotify's gross profit surge in Q3 2024 was driven by a combination of factors:

1. **Revenue Growth**: Total revenue increased by 19.8% year-over-year to €3.81 billion ($4.44 billion), primarily due to a 21% rise in premium revenues and a 13% increase in ad-supported revenues.
2. **Cost Management**: The company improved its gross margin to 29.2%, up by 510 basis points, reflecting effective cost management and improving podcast and music profitability.
3. **Subscriber Growth**: The growth in total monthly active users (MAU) was noteworthy, with a 14% year-over-year increase, reaching 626 million. Premium subscribers grew by 12%, reaching 246 million.
4. **Average Revenue Per User (ARPU)**: The average revenue per user (ARPU) for Premium subscribers increased by 8% year-over-year to €4.62.
5. **Strategic Initiatives**: Spotify's strategic reductions in personnel and marketing expenses contributed to the improved operating income, which flipped to a positive €266 million from last year’s loss of €247 million.

In summary, Spotify's gross profit surge in Q3 2024 was driven by robust revenue growth, improved cost management, and strategic initiatives that boosted profitability.