Spotify Technology on Tuesday reported second-quarter results that comfortably beat expectations for both monthly active users and subscribers, and forecast the number of listeners each month to hit 572 million next quarter.
After laying out plans last year to gain 1 billion users by 2030 and reach $100 billion (roughly Rs. 8,18,900 crore) in annual revenue, Spotify has been growing at a rapid pace, but its expensive expansion into podcasts and audiobooks has hit the margins.
The number of monthly active users rose to 551 million in the quarter, beating Spotify guidance and analyst forecasts of 526.8 million.
Premium subscribers, which account for the bulk of the company’s revenue, rose 17 percent to 220 million, beating estimates of 216.6 million, according to IBES data from Refinitiv.
The growth was driven by marketing campaigns and as more listeners registered in countries in Europe, Latin America and Asia.
However, its quarterly revenue came in at €3.18 billion (roughly Rs 28.7 billion), below analyst estimates of €3.21 billion (roughly Rs 29 billion).
Spotify on Monday raised the prices of its premium plans in several countries, but expects those increases to have minimal impact on revenue for the quarter.
It expects premium subscribers to reach 224 million in the current quarter and revenue of EUR 3.3 billion (roughly Rs. 29,800 crore). Analysts had expected subscribers of 222.4 million and revenue of EUR 3.4 billion (roughly Rs. 30.7 billion).
The shares rose 2 percent in premarket trading.
© Thomson Reuters 2023
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