Music streaming platform, Spotify Technology, has released its quarterly report, showcasing growth in all regions, and exceeding expectations.
Additionally, the company projected that it would reach 601 million monthly listeners by the end of 2023. Notably, Spotify achieved a quarterly profit of €32 million, its first since 2021, due to improved gross margin and reduced marketing and personnel expenses.
During the July-September period, Spotify experienced a significant increase in its gross margin, reaching 26.4%, which was 166 basis points higher than the previous year. Despite investing over €1 billion in its podcast business, the company has been focused on cost control, including laying off 6% of its workforce and raising prices for premium plans in various countries. The number of monthly active users also exceeded expectations, growing by 26% to 574 million. Premium subscribers, who generate the majority of Spotify’s revenue, increased by 16% to 226 million, surpassing estimates.
Additionally, the company’s revenue rose by 11% to €3.36 billion, beating expectations.
The company reported a 16% increase in ad-supported revenue compared to the previous year, with music advertising revenue showing strong growth due to increased impressions sold and stable pricing. Podcast advertising also experienced double-digit growth. Spotify’s monthly user forecast for the fourth quarter indicates that the company is on track to achieve a billion users and generate $100 billion in annual revenue by 2030. Analysts had predicted a forecast of 591.2 million listeners. Spotify also expects to have 235 million premium subscribers and generate €3.7 billion in revenue in the last three months of the year. Analysts had anticipated a forecast of 232.4 million premium subscribers and revenue of €3
