Spotify exceeds expectations, surpassing 600 million active users for the first time
February 7, 2024

Spotify exceeds expectations, surpassing 600 million active users for the first time

The Swedish company Spotify, best known for its music streaming application, has set an ambitious plan to reach one billion users by 2030 and is well on its way to achieving the goal. As reported by Reuters, from its branch in Stockholm, the growth of the company’s shares of eight percent is beyond all expectations, and this growth is visible in all regions. The jump in share prices is due to the increase in subscription prices and the increase in the number of users, and the company recently laid off thousands of employees in order to increase profits. Thus, Spotify exceeds analysts’ expectations not only on the stock market, but also in terms of the size of its user base, which has exceeded 600 million monthly active users.

The company has branched out into podcasts and expanded its audiobook offering to increase subscribers, but has also increased subscriptions. In the fourth quarter of the year, the number of monthly active users increased by 23 percent, reaching 602 million and exceeding analysts’ expectations. The number of premium subscribers, who make up the main part of the company’s revenue, grew by 15 percent and reached the figure of 236 million.

However, although quarterly revenue rose 16 percent to 3.67 billion euros, it fell short of expectations of 3.72 billion euros, due to challenges with foreign exchange losses. Spotify expects revenues in the first quarter of this year to be below the expectations and optimistic forecasts of stock market analysts from Wall Street.

Daniel Ek, CEO of Spotify, said in an interview that there are a lot of levers to pull, including price increases, and that “those pulls” will be at different times and in different markets, and that now the company is focused on the bottom line. result.

Spotify has also invested heavily in various types of podcasts, signing well-known hosts such as Joe Rogan. Podcast advertising saw significant growth in the fourth quarter. Ek further adds “that podcasting was a challenge in 2023, but expects consistent profitability in 2024 in the podcast field.”

The company Spotify predicts a monthly user base of 618 million users, while Wall Street analysts predict 618.8 million users. It also expects a so-called operating income of 180 million euros in the current quarter after this type of loss in the amount of 75 million euros was recorded in the fourth. Spotify predicts that the number of premium users will grow to 239 million in the current quarter, while stockbrokers from New York are not so optimistic in this case, estimating it at 238.3 million.