The 456 million users per month that Spotify reached in the third quarter of 2022 is a truly extraordinary number for the world’s leading audio platform.
Those data are a 20 percent more than a year ago and it exceeds the expectations that the Swedish company itself had set itself.
However, Spotify’s shares did not react well to the news and in the premarket since Wednesday 26 October they are down (-5 percent).
According to the company, paid subscribers reached 195 million users in the quarter, one million more than the previous orientation of the platform streaming of music.
Also, Spotify said it had a very special force in Latin Americaincluding Mexico, Argentina, Colombia and Brazil, where it outperformed expectations.
“We are where we thought we were”: CEO of Spotify
Spotify’s total monthly active users (MAU) grew 20% to 456 million, six million above the previous forecast, a net addition of 23 million, which represents its largest growth in a third quarter to date. .
As we explained earlier, Spotify Premium subscribers hit 195 million, a gain of seven million over the period (about one million more than expected) and 13% more year-over-year purchases.
“There is a lot of global uncertainty, but our business continues to do very well around the world,” said CEO Daniel Ek in the accompanying text of the company’s financial report.
“With a war, a pandemic, inflation, disruption of supply chains and the threat of a global recession, I am proud of everything we have achieved and that, despite all this, we are where we thought we were, “he added.
In the report, Ek claimed that Spotify is considering increasing the price of its subscription plans in the US following the rise of Apple Music and YouTube Premium.
“It’s something we’ll be discussing with our record company partners,” he said.
The financial report 3rd quarter 2022 full of Spotify.
Spotify gains users, but continues to lose money
Spotify’s total revenue was € 3.045 billion, slightly above expectations, with year-over-year growth of 21%.
Premium revenues grew by 22% (to € 2.7 billion) and advertising revenues grew by 19% (to € 385 million).
Revenue grew double-digit worldwide except Europe, where “difficult regional economic conditions” had an impact, the company said.
The problems (and the explanation for the decline in stocks) come when you see Spotify’s gross margin: In the third quarter, it was below expectations at 24 percent.
According to the company, she was struck by the payment of “a large publishing contract outside the United States”.
Also, Spotify recorded an operating loss of 228 million euros that the company attributed to higher personnel costs with the expansion of its global advertising sales team; investments in the purchase of other platforms; and the effect of acquisitions such as Podsights, Findaway, Sonantic, Chartable, Whooshkaa and Heardle.
A) Yes, Spotify reported a loss in the third quarter of 194 million eurosexceeding analysts’ expectations
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