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.

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Conversation 14 comments

  • codymesh

    27 July, 2022 - 9:39 am

    <p>Spotify should pay more podcasters billions of dollars, that will help with narrowing their losses /s</p>

  • DBSync

    27 July, 2022 - 9:56 am

    <p>I guess selling at a loss and making it up on volume doesn’t work after all.</p>

  • AndreD

    Premium Member
    27 July, 2022 - 10:24 am

    <p>I guess we will not see Spotify hifi in the near future. </p>

  • helix2301

    Premium Member
    27 July, 2022 - 1:29 pm

    <p>shame I actually really like car thing made my old car have a new feel </p>

  • fishnet37222

    Premium Member
    27 July, 2022 - 2:24 pm

    <p>In my opinion, with the availability of CarPlay and Android Auto, CarThing just didn’t make sense.</p>

    • will

      Premium Member
      27 July, 2022 - 4:30 pm

      <p>Agreed. You were very much locked in to a single function device</p>

  • Daekar

    27 July, 2022 - 2:52 pm

    <p>It amazes me that modern society is largely founded on companies that can’t make money. How old is Spotify now? What the heck is wrong with investors? </p>

  • sunredsky

    27 July, 2022 - 5:37 pm

    <p>I’m no mathematician, but wouldn’t 188M paid subscribers x $10/mo. x 3 months be nearly twice what they say quarterly revenue is?</p>

    • onyourmarko

      27 July, 2022 - 6:30 pm

      <p>They have multiple plans. Student for $4.99, Couple for $12.99, Family for $15.99. Plus they have promotions and bundles with other services.</p>

      • toukale

        27 July, 2022 - 8:45 pm

        <p>Those prices you listed are basically for the west, in Asia which make up a large portion of their user-based prices are 10%-15% of that.</p>

        • sunredsky

          27 July, 2022 - 10:42 pm

          <p>Got it. Thanks for the explanation.</p>

  • billreilly

    27 July, 2022 - 7:18 pm

    <p>Spotify must be doing well because they are now the shirt sponsor for the FC Barcelona football team and also the name sposnsor of their stadium, which is now called Spotify Camp Nou… That’s costing them 280 million euros over the next 4 seasons.</p>

    • rbgaynor

      28 July, 2022 - 4:45 pm

      <p>"Spotify posted a net loss of $127 million on revenues of $2.94 billion"</p>

      • billreilly

        28 July, 2022 - 7:17 pm

        <p>Yes, I read that too, obviously… But what they are investing in FC Barcelona (as well as other adverising and investing) is probably one of the reasons for the net loss, so they are obviously optimistic about the future and planning for it… Companies do that all the time.</p>

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