Between April and June, Spotify earned 2.9 billion euros in revenue, instead of the 2.8 billion expected by the market. The platform now has 433 million users, 5 million more than the number analysts expected.
For Spotify, the year 2022 is not a long calm river, but the Swedish music streaming giant is steering its boat rather well so far. Evidenced by its performance in the second quarter, which exceeded analysts’ predictions. Between April and June, the Scandinavian company thus garnered 2.9 billion euros in revenue, up 23%, instead of the 2.8 billion expected by the market.
However, this good performance should be qualified, with a net loss of 125 million euros, while the company had generated a profit of 20 million euros over the same period a year earlier. Spotify also ended in the green in the first quarter of 2022, with the Swedish group posting a net profit of 131 million euros in the first three months of the year. However, the company thwarted market forecasts, which expected 127 million euros in losses in the second quarter.
Spotify
Spotify is a music streaming platform that allows you to listen to unlimited music, radio and podcasts either without subscription (with advertising) or with a subscription.
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Downloads:
385 -
Release date :
07/26/2022 -
Author :
Spotify AB -
Licence :
Free License -
Categories:
Music
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Operating system :
Android, Google Chrome extension, Linux, Online service All Internet browsers, Windows XP/Vista/7/8/10/11, iOS iPhone / iPad / Apple Watch, macOS
Spotify closes in on 200 million paid subscribers
In addition to a growing turnover, the firm headed by Daniel Ek also did better than expected in terms of the number of monthly active users. It now has 433 million, up 19% year on year, or 5 million more than the number expected by analysts. It is mainly in Asia, particularly in India, Indonesia and the Philippines, that the Scandinavian platform has garnered the most users.
As for the premium version of its service, it was mainly in Europe and Latin America that Spotify gained additional customers between April and June. The platform now has 188 million paid subscribers, who make up the overwhelming majority of the company’s revenue. However, Spotify continues to ramp up in advertising, offered to users who use the service for free. In the second quarter, the platform’s advertising revenue grew by 31% and now represents 13% of the company’s turnover.
On course for one billion users by 2030
For the third quarter, Spotify is targeting 450 million monthly active users, including 194 million paying subscribers. At the financial level, the Swedish giant hopes to capture 3 billion euros in revenue between July and September. But the platform hopes to quickly shift up a gear as it has set itself a dual goal for the next few years: one billion users by 2030 and $100 billion in revenue within a decade.
To achieve this, the group led by Daniel Ek intends to capitalize on its breakthrough in podcasts and audio books to increase its gross margins to 40% and its operating margin to 20%, the company then becoming profitable. For now, the company’s gross margins are around 25%.