Spotify Sees Robust Growth in Paying Subscribers in Q2

On Wednesday, Spotify released second-quarter earnings ahead of analysts' expectations, buoyed by a 14 percent increase in paying subscribers as more people listened to its podcasts. The business also provided a positive outlook for the current quarter.

Highlights

  • Spotify is the most widely used audio streaming subscription service in the world.
  • Users that are online every month increased by 19% to 433 million.
  • The third quarter saw a 25 percent slowdown in headcount growth for Spotify.

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Spotify

With a community of over 433 million Monthly Active Users and 188 million Premium Subscribers, Spotify is the most widely used audio streaming subscription service in the world. With 183 markets served and more than 80 million tracks, including more than 4 million podcast titles, it has completely changed how people access and enjoy music and podcasts.

On Wednesday, Spotify released second-quarter earnings ahead of analysts' expectations, buoyed by a 14% increase in paying subscribers as more people listened to its podcasts. The business also provided a positive outlook for the current quarter. In contrast to experts' projections of EUR 2.8 billion (approximately Rs. 22,740 crore), the Swedish music streaming service reported a 23% increase in sales to EUR 2.9 billion (about Rs. 23,550 crore).

More Information Regarding Subscriber Data

Analysts had predicted 187 million premium customers; however, the number of premium subscribers increased to 188 million, exceeding forecasts. Users that are online every month increased by 19% to 433 million. Analyst expectations were for 428 million.

The third quarter saw a 25% slowdown in headcount growth for Spotify, which had been aggressively hiring throughout the first two quarters. The company has also been paying more attention to marketing activity. According to a source acquainted with the email's contents, Spotify Technology SA CEO Daniel Ek sent an email to the workers informing them that the audio streaming company would be reducing hiring by 25%.

Though it would decrease the pace "and be a bit more conservative" over the next quarters, Ek said Spotify would continue employing. 194 million paid customers for the current quarter were the company's forecast, which was in line with forecasts. In contrast to expectations of EUR 2.95 billion, it anticipates revenue of EUR 3 billion (approximately Rs. 24,360 crore) (roughly Rs. 24,000 crore).

In an effort to attract users to the expanding non-music audio category, Spotify has staked a lot of money on podcasts, spending over a billion dollars to acquire programmes like The Joe Rogan Experience and other companies.  With 4.4 million podcasts available to users, the firm reported that podcast listeners set a new high in the quarter.  In the third quarter, the business anticipates having 450 million active monthly users overall.

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Bhavya is very keen on learning about developments that take place in the tech and telecom industry. She is also someone whom you can sit with and talk about all the Netflix movies and series on science fiction.

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