Music streaming giant Spotify has announced a major milestone, revealing that its monthly active users have risen to 777 million, while its number of paid Premium subscribers has reached 300 million.
The Swedish streaming platform disclosed the figures on Tuesday as part of its latest financial results for the quarter ending in June.
According to the company, monthly active users increased by 16 million compared to the previous quarter, although the total fell one million short of Spotify’s earlier forecast.
Spotify also reported strong growth in its Premium subscription service, adding seven million new paying subscribers during the quarter to reach 300 million, exceeding analysts’ expectations by one million.
Despite the impressive subscriber growth, the company projected a slower pace of expansion in the third quarter, saying it expects to add about 11 million new net subscribers.
The cautious outlook affected investor confidence, with Spotify shares falling 2.6 percent during early trading on the New York Stock Exchange (NYSE) following the announcement.
Financially, Spotify delivered another strong performance. The company posted an operating profit of €655 million ($754 million), representing a 61 percent increase compared to the same period last year.
Its quarterly revenue also grew by 14 percent to €4.8 billion, meeting the company’s internal expectations.
Reacting to the results, Spotify’s Co-Chief Executive Officer, Alex Norstrom, said the company’s continued growth reflects the strength of its business and the opportunities ahead.
“The earnings reflect a business that is healthy and compounding, and opportunities only we are positioned to pursue,” Norstrom said.
He noted that Spotify has become part of users’ everyday lives, serving people during commuting, workouts, studying, gaming, meals and even while sleeping.
“Spotify lives across your whole day. At our scale, that is rare, and our position gives us an opportunity space as wide as our users want it to be,” he added.
As part of efforts to keep attracting new users and retain existing ones, Spotify has continued introducing new features to its platform.
The company recently launched “Personal Podcasts,” an AI-powered feature that creates short podcasts tailored to individual users based on their interests and listening habits.
Spotify also announced a new benefit for Premium subscribers, allowing dedicated fans to purchase concert tickets before they become available to the general public.
The latest results highlight Spotify’s continued dominance in the global music streaming industry despite growing competition from other digital audio platforms.
Source: AFP.
