Spotify Posts Big Usage and Subscriber Gains

As part of its most recent quarterly earnings, Spotify reported that monthly active users surged 27 percent to 551 million while its paid subscriber base grew 17 percent to 220 million. Across the board, Spotify beats its own guidance, but it also noted some charges related to its “ongoing efforts to become a more efficient and stronger business.”

Spotify posted an operating loss of €247 million on revenues of €3.2 billion for the quarter ending June 30, 2023. Revenues were up 11 percent year-over-year (YOY).

“Spotify had a very strong quarter,” the Spotify announcement notes. “We beat guidance and welcomed more users and subscribers than expected, with growth continuing to come from markets all over the world.”

The usage numbers are off the charts. Spotify added 36 million monthly active users in the quarter, almost double the 22 million it predicted, and an all-time quarterly high for the company. It also added 10 million paid subscribers in the quarter, 3 million more than expected, also a quarterly record.

220 million of the 551 million people now using Spotify are paying subscribers, and they contributed €2.8 billion in revenues in the quarter. The remaining 317 million are ad-supported, and they contributed €404 million in the quarter.

Spotify also highlighted several new features it added in the quarter, including a redesigned desktop experience, support for 11 additional languages, and so on. But the biggest change to the service is coming in September, when the cost of the paid subscription goes up yet again. Spotify incurred charges in the quarter related to making its business more efficient.