Spotify forecast first-quarter profit above market estimates on Tuesday as the Swedish audio-streaming giant benefits from steady user growth, price hikes and a cost-cutting drive. The company expects operating income of 548 million euros ($566.

Spotify Technology SA posted another quarter of better-than-expected subscriber growth in the fourth quarter, helping the Swedish music company record its first-ever annual profit.

Spotify Technology S.A. reported a fourth-quarter profit as the music streaming service’s monthly active users climbed by double-digits over the year-ago period, sending shares of the company up sharply higher in premarket trading.