Spotify Sees Double-Digit Growth Across the Board

Spotify ran the rack with its latest quarterly earnings, with double-digit growth across monthly active users, subscribers, profit, and revenues.

The firm posted a net income of €197 million on revenues of €3.6 billion in the quarter ending March 31. Revenues are up 19.2 percent year-over-year (YOY). In the year-ago quarter, Spotify swung to a net loss of -€225 million.

“The business performed well in Q1, led by healthy subscriber gains, improved monetization, and record strength in profitability,” Spotify notes in a letter to shareholders. “Overall, we are encouraged by the strong start to the year and view the business as well positioned to deliver on the goals outlined at our 2022 Investor Day.”

Spotify reported that it now has 615 million total users, up 19 percent YOY. Of those, 239 million are paid subscribers (up 14 percent YOY), while the remaining 388 million are on ad-supported plans (up 22 percent YOY). Paid subscribers were responsible for $3.2 billion of Spotify’s revenues (a gain of 20 percent YOY), while ad-supported members contributed $389 million (up 18 percent YOY).

The firm says that growth in its Duo and Family plans contributed to its strong paid subscriber numbers, while average revenue per user (ARPU) was up 5 percent YOY thanks to its price increases. Spotify once again set a record for music industry payouts, with over $9 billion paid to artists in the previous year.

Looking ahead, Spotify expects to grow its total user base to 631 million in the current quarter, with about 245 million paid subscribers.