This Wednesday, music giant Spotify Technology share the reports regarding their quarterly revenue. What’s interesting about the statistics shared by the the audio streaming company is that the value was able to beat the estimates of the analysts on higher advertising income. And since more number of people subscribed to the premium service, the shares of the Swedish company went up by around 5%.
At the end of the first quarter of 2022, Spotify managed to acquire 182 million paid subscribers. At the end of 2021, the company was able to acquire 180 million but the original number was supposed to be 183 million subscribers according to the forecast. However due to Spotify’s exit from Russia, the company lost around 1.5 million subscribers.
Spotify also revealed on Wednesday that as of the end of March, the streaming platform has around 422 million monthly active users. The number has gone up from 406 million at the end of December in 2021. Regarding its growth, the company said that their premium subscribers grew 15% year over year and has now reached to 182 million.
Speaking further on the numbers, they said that even though the figures are slightly below their guidance, even after excluding the loss of approximately 1.5 million subscribers due to the exit from Russia, the growth was still above the expectations. According to their statement, Latin America and Europe has contributed significantly to the numbers.
Spotify has invested more than a billion dollars on podcasts like “The Joe Rogan Experience” so as to attract users to the non-music industry, which is growing exponentially as well. One of the largest music streaming service providers today, Spotify reported an approximate increase of 24% in their revenue to EUR 2.66 billion in this quarter. According to the IBES the data from Refinitiv, the analysts had expected a revenue of around EUR 2.62 billion.
Spotify aims to reach total monthly active users of 428 million in the second quarter. The forecast for revenue in the second quarter is set at approximately EUR 2.8 billion.
