Spotify's stock experiences a 10% increase following the company's successful cost-cutting measures, resulting in its first quarterly profit in over a year.

• In the third quarter, Spotify recorded its first profit after 18 months, despite initial expectations of a loss.
• The Swedish music streaming giant made a profit of 65 million euros ($68.9 million) due to decreased marketing expenses and personnel costs.
• Earlier this year, Spotify increased the cost of its subscription plans and has since been expanding into podcasts and audio books.

On Tuesday, the company's shares closed 10% higher after reporting a surprise profit for the third quarter, marking its first quarterly profit in 18 months, due to price increases and cost-cutting measures.

This year, the company's stock has more than doubled, resulting in a market value of $33.22 billion.

Spotify's profit of 65 million euros ($68.9 million) was due to lower marketing expenses, fewer personnel costs, and related costs. The company also recently laid off 200 employees, or 2% of its workforce, as part of a restructuring in its podcasting unit.

In contrast to Wall Street's expectations, the company's performance in the three months leading up to Sept. 30 was not as anticipated.

• According to LSEG, formerly known as Refinitiv, earnings per share are expected to be 22 euro cents less than previously anticipated, with a loss of 33 euro cents.
• Revenue: 3.36 billion euros vs. 3.33 billion euros expected, according to LSEG
• Premium subscribers: 226 million vs. 224 million, according to StreetAccount

Spotify raised the prices of its subscription plans earlier this year, resulting in an increase of up to $2 in monthly bills for users. The company attributed the 11% year-over-year revenue growth in its third-quarter earnings report to the "early effects of price increases."

CFO Paul Vogel stated on CNBC's "Squawk on the Street" that raising prices in the past has had little impact on churn. He also mentioned that the company had a similar forecast for this quarter and saw no real change on the churn side, but an acceleration of gross additions of subscribers.

In the quarter, the company reported 574 million monthly active users, exceeding the estimated 572.1 million, according to StreetAccount. Additionally, the company generated 447 million euros of ad-supported revenue, up 16% year over year.

Earlier this month, Spotify announced that it would provide subscribers with access to over 150,000 audio books. The service is already available in the U.K. and Australia, and will launch in the U.S. later this year.

Spotify is expanding its audio offerings beyond music and podcasts with its latest venture into a new audio format.

"According to Vogel, the podcasting business has become a much larger global industry due to Spotify's involvement. He believes that the audiobook side will also benefit from this development, benefiting both authors and consumers."

Rich Greenfield, a LightShed analyst, stated on X (formerly Twitter) on Tuesday that Spotify is distinguishing itself from its competitors who are not pushing boundaries in audio.

Spotify expects profitability to continue into the fourth quarter and 2024.

"Vogel stated that this is a turning point for us, and we anticipate maintaining quarterly profits."