WALL STREET, New York — Spotify Technology S.A. — reported its financial results for the second fiscal quarter of 2018 ending June 30, 2018.

The streaming tech company which started in Stockholm, Sweden in 2008 reported that it finished the quarter with 180 million Monthly Active Users (“MAU”) and 83 million Premium Subscribers, up 30% and 40% respectively.

Total Revenue was €1,273 million, up 26% Y/Y and 34% Y/Y after adjusting for the negative impact from changes in foreign exchange rates.

Gross Margin of 25.8% was at the high end of our guidance range of 24-26%.

Spotify’s Operating Loss was €90 million or approximately 7% of Total Revenue. This includes a €30 million cash expense related to our direct listing on the NYSE in April (“Direct Listing”) and €32 million of accrued social costs for options and RSUs3 (€24 million more than anticipated in our Q2 guidance as a result of the strong stock performance in the quarter).

Excluding increased accrued social costs for options and RSUs, Operating Loss would have been at the low end of our guidance. Net cash flows from operating activities were €30 million, and Free Cash Flow was €18 million.