Spotify Technology reported its first annual profit on Tuesday and forecast quarterly earnings above Wall Street estimates, as the Swedish audio-streaming giant benefits from strong user growth, price hikes and a cost-cutting drive.

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.