Spotify surpasses regional expectations and bets on a 2024 with more podcasts
Spotify’s number of monthly active users increased by 23%, exceeding regional and analyst forecasts.
Spotify said on Tuesday that its monthly active users and subscriptions for the fourth quarter surpassed forecasts and that it was growing across all geographies, its shares rose 8%. The company also claimed that this year’s revenue and profitability trends seemed promising.
The Swedish streaming music startup expanded into audiobooks and podcasts in an attempt to reach one billion users by 2030. In an effort to boost earnings, it also increased membership fees and fired thousands of workers.
The number of monthly active users rose 23% to 602 million in the fourth quarter, beating Spotify’s and analysts’ forecasts, which expected 601.33 million.
«Premium» subscribers, which account for the bulk of the company’s revenue, rose 15% to 236 million, beating estimates of 235.1 million.
However, quarterly revenue, which rose 16% to €3.67 billion ($3.94 billion), fell short of estimates of $3.72 billion as it was affected by foreign exchange losses. Its first-quarter revenue is also expected to fall below expectations.
«We have a lot of levers to pull, including price increases, so you’ll see us working with all of those at different times and in different markets,» CEO Daniel Ek said in an interview.
