By Jaspreet Singh (Reuters) -Spotify forecast monthly active users and premium subscribers for the second quarter above market estimates on Tuesday, signaling strong demand for its audio streaming services as it leans on AI features to drive growth.

Spotify Technology SA reported more subscribers than analysts expected in the first quarter, showing that the streaming service’s strategy of expanding beyond music into audiobooks and podcasts is luring more fans even as it raises prices.

Spotify's paid subscribers increased to 268 million in its first quarter, up 11% year-over-year and beating guidance by three million. The total number of monthly active users grew to 675 million, up 12% year-over-year,