Spotify said on Tuesday its third quarter revenue and profit margin improved thanks to double-digit growth in subscribers and monthly active users.

The leading music and podcast streaming platform said its pool of paying subscribers rose by 12% to 281 million, and its monthly average users rose 11% to 713 million from the year-ago quarter. Paying users drove a 12% uptick in revenue to 4.3 billion euros ($5 billion), and helped expand the company’s gross margin by 56 basis points to 31.6%. Overall gross profit rose 9% to 1.35 billion euros ($1.84 billion).

“The business is healthy. We have the tools we need – pricing, product innovation, operational leverage, and eventually the ads turnaround – to deliver both revenue growth and profit expansion,” Spotify founder and CEO Daniel Ek said in

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