Although it missed its forecast by 3 million subscribers, Spotify reported a 19% increase in total monthly active users (including free and premium) to 615 million in Q1, up 13 million from Q1. The growth was ascribed by the corporation to organisational changes, such as the 17% layoffs that occurred in December 2023, and moderate marketing efforts.
There are now 239 million Spotify Premium users globally, up 3 million from the previous quarter and growing 14% YoY. The company further stated that the disruption brought on by the employment losses was the reason for the lower-than-expected MAU increase.
In the second quarter, Spotify reported a 19.5% growth in sales to €3.64 billion, a 27.6% gross margin, and a €1.0 billion gross profit. In comparison to a net loss of €225 million in the same period last year, operating income hit a new quarterly high of €168 million, while net income reached €197 million.
Spotify wants to achieve its aggressive goals for monetization in 2024, including significant revenue growth and margin expansion. Spotify predicted €3.8 billion in revenue for Q2, representing a 19% yearly growth. Six million Premium customers and sixteen million new active users each month are anticipated by the corporation.
Price hikes drove up average revenue per subscriber in Q1 to €4.55, a 5% rise that was somewhat offset by product and market mix.
