Spotify beats all expectations for this quarter, with 456 million monthly active users, distributed among 195 million premium subscribers and 273 million ad-supported users.
Spotify has generated over €2.6 billion in revenues from premium members this quarter alone, up to €2.17 billion in revenues in the same period last year.
And €385 million in ad-supported revenues, compared to €323 million in revenues in the same period last year.
In an uncertain macroeconomic scenario, Spotify keeps growing its topline, yet, in this environment, Daniel Ek, founder, and CEO of the company, highlighted how Spotify would make future investment decisions:
We will make new investments with two key criteria in mind: First, it must be accretive to margin (over the investment period) given this new hurdle rate…. and second, over the long term, that investment must strengthen our value proposition to users and creators alike.
Spotify’s quarter’s revenue growth was driven by a premium subscriber growth of 13%. Its subscriber base kept growing, given Spotify’s massive investments in growth initiatives.
Spotify went all in on podcasting. Indeed podcasting drove the ad-supported revenues together with the music business.
In fact, Spotify has completed the acquisition of various startups in the podcasting space, such as: Podsights, Findaway, Sonantic, Chartable, Whooshkaa and Heardle.
The most interesting part is the Original and Exclusive podcast’s growth and the further adoption of the Spotify Audience Network from advertisers!
Where most companies cut their workforce, Spotify keeps investing in it. This results in reduced margins yet incredible growth, even in this economic environment.
Spotify keeps pushing its multi-modal (expanding the formats), multi-vertical strategy.
In short, the company keeps expanding the formats available on the platform (from music to podcasting, audiobooks, and more).
While it keeps strengthening its advertising network (Spotify Audience Network).
And it keeps executing a multi-vertical strategy, where Spotify covers more and more topic areas of interest for its subscribers!
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