Spotify beat financial estimates for the quarter ending March 31 and revealed that it now has over 130 million paid subscribers and 286 million monthly active users.
“Despite the global uncertainty around COVID-19 in Q1, our business met or exceeded our forecast for all major metrics,” a Spotify letter to shareholders explains. “For [the current quarter] and the remainder of the year, our outlook for most of our key performance indicators has remained unchanged with the exception of revenue where a slowdown in advertising and significant changes in currency rates are having an impact. Our business remains very healthy with more than €1.8 billion in liquidity and we expect to be free cash flow positive for the year. Overall, despite some changes in listening patterns, we are encouraged with the trends we are seeing, and continue to be optimistic about the underlying growth fundamentals of the business.”
Spotify posted an operating loss of $18 million on revenues of $2 billion in the quarter, the latter of which is a gain of 22 percent year-over-year. In the same quarter a year ago, its operating loss was $51 million.
As for the subscriber base, Spotify says that its monthly active users jumped 31 percent YOY to 286 million users. Its paid subscriber base also jumped by about 31 percent to 130 million subscribers, while its ad-supported user base hit 163 million. It had previously reported 124 million paid subscribers as of the end of 2019.