Spotify Has 433 Million Users, is Canceling Car Thing
- Paul Thurrott
- Jul 27, 2022
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14
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.
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“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.