Spotify Q1 2023


  • Total Monthly Active Users (MAUs) increased from 422M in Q1 2022 to 515M in Q1 2023 (Y/Y growth: 22%).
  • Premium Subscribers grew from 182M in Q1 2022 to 210M in Q1 2023 (Y/Y growth: 15%).
  • Ad-Supported MAUs increased from 252M in Q1 2022 to 317M in Q1 2023 (Y/Y growth: 26%).


  • Premium revenue increased from €2,379M in Q1 2022 to €2,713M in Q1 2023 (Y/Y growth: 14%).
  • Ad-Supported revenue grew from €282M in Q1 2022 to €329M in Q1 2023 (Y/Y growth: 17%).
  • Total Revenue increased from €2,661M in Q1 2022 to €3,042M in Q1 2023 (Y/Y growth: 14%).
  • Gross Profit grew from €671M in Q1 2022 to €766M in Q1 2023 (Y/Y growth: 14%).
  • Gross Margin remained relatively stable, ranging from 24.6% to 25.3% over the period.
  • Operating Income remained negative, with an Operating Margin ranging from (0.2%) to (7.5%).


  • Net Cash Flows From Operating Activities ranged from €37M to (€70M) over the period.
  • Free Cash Flow ranged from €22M to (€73M) over the period.
  • Cash & Cash Equivalents, Restricted Cash & Short Term Investments remained stable, ranging from €3.4B to €3.7B.


  • Exceptionally strong user growth in Q1, with Total Monthly Active Users (MAUs) reaching 515 million.
  • Largest Q1 net additions in history (26 million quarter over quarter), second largest all time (after Q4 of last year).
  • Record Q1 net additions across nearly all age demographics in both developed and developing regions.
  • Premium Subscribers reached 210 million, 3 million ahead of guidance, with strength across all regions.
  • Strong engagement trends, including year over year growth in content hours per MAU and positive trends in DAU/MAU ratio and churn.
  • Revenue grew 14% Y/Y to over €3.0 billion, slightly behind forecast due to modest underperformance in advertising.
  • First Q1 in Spotify history with over $300 million in ad revenue.
  • Gross Margin of 25.2%, above guidance by 30 basis points.
  • Operating Expenses growth lower than forecast, Operating Loss ahead of guidance by €38 million (includes €44 million of severance charges).
  • Positive Free Cash Flow of €57 million in Q1.


  • Forecasting 530 million MAUs (increase of 15 million) and 217 million subscribers (increase of 7 million).
  • Forecasting €3.2 billion in Total Revenue, Gross Margin of roughly 25.5%, and Operating Loss of approximately €129 million.
  • Currency translation benefits expected to reverse in Q2 due to weakening US dollar relative to Euro (300 bp headwind to growth).
  • Excluding currency effect, constant currency Revenue would be closer to €3.3 billion (14% Y/Y growth vs. 13% in Q1).
  • Expecting steady ramp in Gross Margins and sequential improvements in Operating Loss throughout 2023.

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