Spotify technology released second-quarter results on Tuesday that significantly beat expectations for both monthly active users and subscribers, and forecast that the number of monthly listeners would hit 572 million in the next quarter.
After last year Spotify laid out plans to reach 1 billion users by 2030 and hit $100 billion in annual revenue (around Rs. 8,18,900 billion), the company has grown rapidly, but costly expansion into podcasts and audiobooks has hurt margins.
Monthly active users rose to 551 million in the quarter, beating Spotify and analyst forecasts of 526.8 million.
According to Refinitiv’s IBES data, premium subscribers, who make up the bulk of the company’s revenue, grew 17 percent to 220 million, beating estimates of 216.6 million.
Growth was fueled by marketing campaigns and by more listeners signing up in countries in Europe, Latin America and Asia.
However, quarterly revenue was 3.18 billion euros (approx. 28,700 crore rupees), below analyst estimates of 3.21 billion euros (approx. 29,000 crore rupees).
Spotify on Monday behaved Pricing for its premium plans will be reduced in several countries, but these increases are expected to have minimal impact on revenue for the quarter.
The company expects premium subscribers to reach 224 million in the current quarter and revenue to be €3.3 billion (about 29,800 crore). Analysts were expecting 222.4 million subscribers and revenue of €3.40 billion (approximately 30,700 crore).
Shares were up 2 percent in premarket trading.
© Thomson Reuters 2023
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