Spotify Has 433 Million Users, is Canceling Car Thing

As part of its quarterly earnings report, Spotify revealed that it now has over 433 million monthly active users. And it’s killing Car Thing, its weird in-car connectivity solution.

Spotify posted a net loss of $127 million on revenues of $2.94 billion for the quarter ending June 30. Revenues were up 23 percent year-over-year (YOY), but the quarterly loss is bigger than that from a year ago.

“MAU [monthly average user] performance accelerated this quarter, with net additions reaching a record Q2 high of 19 million,” Spotify reported. “Reported Gross Margin was negatively impacted by our decision to stop manufacturing Car Thing, partially offset by a positive change in prior period estimates for rights holder liabilities.”

With its 19 percent growth YOY, Spotify hit 433 million MAUs in the quarter, 5 million more than expected. This figure also represents Spotify’s biggest-ever growth in Q2. Premium (paying) subscribers grew 14 percent YOY to 188 million, also more than expected. Ad-supported MAUs grew 22 percent YOY to 256 million.

Spotify will take a $31 million charge related to the cancelation of Car Thing.