Spotify Added 5 Million Paying Subscribers in Q1

Spotify now has 263 million premium subscribers and 675 million monthly users as revenues surged 16 percent to €4.2 billion in the quarter ending March 31.

“The underlying data at the moment is very healthy,” Spotify founder and CEO Daniel Ek says. “Engagement remains high, retention is strong, and thanks to our freemium model, people have the flexibility to stay with us even when things feel more uncertain. So yes, the short term may bring some noise, but we remain confident in the long-term story, and the direction we’re heading in feels clearer than ever.”

Spotify’s ad-supported monthly active users (MAUs) were up 12 percent in the quarter to 425 million, while premium subscribers were up 11 percent to 263 million and total MAUs were up 12 percent to 675 million. Ad-supported users contributed €537 million in the quarter, up 7 percent, while premium subscribers generated €3.7 billion in revenues, up 17 percent. Free cash flow in the quarter was €877 million, a record.

“Looking into 2025, we view the business as well positioned to deliver another year of continued growth and improving margins as we reinvest to support our long-term potential,” the firm wrote in a letter to shareholders.