Music Business

Spotify Q3 2023: Users pass 574M in first Profitable Quarter since ’21

In its first profitable since 2021, Spotify’s monthly active users (MAUs) passed 574 million, and paid subscribers topped 226 million.

Both increases were slightly above Spotify’s guidance. At the end of Q2, Spotify’s monthly active users were 551 million, and subscribers topped 220 million.

Q3 2023 was the first report since Spotify hiked Premium subscriptions from $9.99 to $10.99 monthly.

Highlights of Spotify Q3 2024 Report

  • Monthly Active Users were up 26% Y/Y to 574 million and 2 million ahead of guidance. This represents our second-largest Q3 net addition performance in history. 
  • Subscribers grew 16% Y/Y to 226 million. Net additions of 6 million were 2 million ahead of guidance. 
  • Total Revenue grew 11% Y/Y to €3.4 billion, exceeding guidance.
  • Gross Margin finished above guidance at 26.4%, and reflected an improvement in podcasting trends and growth in Marketplace activity, among other items. 
  • Operating Income of €32 million was achieved due to a higher Gross Margin as well as lower than expected personnel and related costs, and marketing spend. 

MORE: Spotify stock up 10% after strong Q3 Report and solid Q4 forecast

Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.

Bruce Houghton on 10/24/2023 in Music Business | Permalink | Comments (0)
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