Spotify reported that its Premium Subscriber growth was led by “continued double-digit YoY growth across all regions” as well as growth in its Family and Duo plans.<\/p>\n
Spotify breaks down its Premium Subscriber base by region within its investor presentation, reporting that Europe accounted for 38%<\/strong> of its total premium subscriber base in Q1 (see below).<\/p>\n North America accounted for 27%<\/strong> of SPOT’s total subscriber base in Q1, while Latin America accounted for 22%<\/strong>.<\/p>\n Spotify noted in its investor presentation that its “business performed well in Q1, led by healthy subscriber gains, improved monetization and record strength in profitability”.<\/p>\n \u201cWe\u2019ve talked about 2024 as the year of monetization and we\u2019re delivering on that ambition.\u201d<\/p>\n Daniel Ek, Spotify\u00a0<\/span><\/p><\/blockquote>\n The company added: “Although we saw greater MAU variability during the quarter amidst moderated marketing activity and organizational change, Subscriber net additions of 3 million were in-line with guidance while YoY growth in Premium ARPU and advertising revenue both improved.”<\/p>\n Spotify\u2019s total number of Monthly Active Users<\/strong>, which combine paying users and ad-supported users, grew 19% YoY<\/strong><\/span> to 615 million.<\/strong><\/p>\n That was up 13 million<\/strong> MAUs\u00a0<\/span>from the 602 million <\/strong>reported for the prior quarter (Q4 2023), but below guidance by 3 million<\/strong><\/span> (Spotify forecast that it would reach\u00a0618 million<\/strong> MAUs in Q1).<\/p>\n The company reported that its MAU performance in Q1 reflected “healthy growth across all regions”, led by Latin America and Rest of World, as well as “Moderated marketing activity, which led to more normalized growth following 2023\u2019s record performance”.<\/p>\n In terms of finances, in Q1, Spotify\u2019s Premium \/ subscriber revenues grew 21% YoY<\/strong> <\/span>at constant currency to \u20ac3.247 billion ($3.525bn)<\/strong>\u00a0and was driven, according to SPOT, by its subscriber growth and a Premium ARPU increase to \u20ac4.55 <\/strong>($4.94) \u2013 up 7% YoY<\/strong><\/span> constant currency.<\/p>\n Spotify noted in its investor presentation that “excluding the impact of FX, ARPU performance was driven by price increase benefits, partially offset by product and market mix”.<\/p>\n July 2023 marked the\u00a0first time in its 15-year history<\/a> that Spotify increased its flagship subscription price point in several territories including the US and UK. Spotify also plans<\/a> to raise its subscription prices again this year in multiple markets, including the US.<\/p>\n Spotify\u2019s Ad-Supported Revenue in Q1 2024 was \u20ac389 million ($422.37),<\/strong> up 19% YoY<\/strong><\/span> constant currency, reflecting double-digit Y\/Y growth across all regions.<\/p>\n SPOT reported that its “music advertising revenue grew healthy double-digits YoY driven by growth in impressions sold and increased pricing”.<\/p>\n The company’s podcast advertising revenue grew faster than music, however, driven by what SPOT said was “significant growth in impressions sold across Original and Licensed podcasts and the Spotify Audience Network, partially offset by softer pricing”.<\/p>\n Spotify generated \u20ac3.636<\/b>\u00a0billion<\/strong> ($3.947bn<\/strong>) in total<\/em>\u00a0quarterly revenue (including Premium and ad-supported), which was up 21%\u00a0YoY<\/strong><\/span> at constant currency.<\/p>\n The company\u2019s Gross Margin finished at 27.6% <\/strong>in Q1 2024, <\/strong>up from 25.2%<\/strong> in Q1 2023.<\/p>\n In terms of profitability<\/strong>, Spotify posted an operating income of \u20ac168 million ($182.41m),<\/strong> which it noted in its investor presentation was “a new quarterly high” and reflected “lower personnel and related costs and marketing spend”.<\/p>\n Spotify slashed<\/a> around 17%<\/strong> of its global workforce in December, the streaming company\u2019s third round of job cuts last year.<\/p>\n According to its latest investor filing, at the end of Q1, Spotify’s workforce consisted of 7,721<\/strong> full-time employees globally, which it noted on Tuesday (April 23), “includes employees impacted by December 2023 workforce reduction that remained on garden leave”.<\/p>\n SPOT also reported that its operating Income was impacted by \u20ac82 million<\/strong> ($89.03m) in Social Charges, which are payroll taxes associated with employee salaries and benefits in some of the countries in which the company operates.<\/p>\n Spotify’s operating expenses saw a decline of 9% YoY<\/strong> at constant currency, from \u20ac922 million in Q1 2023 to \u20ac836 million<\/strong> ($907.72m)<\/strong> in Q1 2024 (see below).<\/p>\n Spotify also reported that its Gross Profit, which stood at \u20ac1.004 billion ($1.090bn) in Q1, surpassed \u20ac1 billion for the first time in its history.<\/p>\n In terms of guidance for Q2, Spotify forecasts reaching 631 million<\/b> MAUs, an addition of around 16 million<\/strong> net new MAUs in the quarter.<\/p>\n The company projects its total Premium Subscriber base to hit\u00a0245 million<\/b>\u00a0in Q2, an addition of approximately 6 million<\/b>\u00a0net new subscribers in the quarter.<\/p>\n Spotify forecasts an operating income of\u00a0\u20ac250 million<\/b>\u00a0for Q2, and total revenue of\u00a0\u20ac3.8 billion<\/b>.<\/p>\n \u201cWe\u2019ve talked about 2024 as the year of monetization and we\u2019re delivering on that ambition,\u201d said Spotify co-founder and CEO Daniel Ek.<\/p>\n \u201cNow as we\u2019ve shifted to focus on strong revenue growth and margin expansion, we see a clear opportunity to ensure we are also continuing to grow the top of our funnel.<\/p>\n “I feel good about the changes we are implementing and remain very confident in our ability to reach the ambitious plans we\u2019ve outlined.\u201d<\/p>\n All EUR-USD conversions made at the average rate of the relevant period according to the European Central Bank<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Spotify posted a “quarterly high” operating income of \u20ac168 million ($182.41m)<\/p>\n","protected":false},"author":15,"featured_media":165238,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[9,7],"tags":[108],"class_list":["post-199549","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-news","tag-spotify"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/199549","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/comments?post=199549"}],"version-history":[{"count":0,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/199549\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/media\/165238"}],"wp:attachment":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/media?parent=199549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/categories?post=199549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/tags?post=199549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n![](\"https:\/\/www.musicbusinessworldwide.com\/files\/2024\/04\/Screenshot-2024-04-23-at-11.26.56-80x45.jpg\")
<\/figure>\n
\nMonthly Active Users:<\/h6>\n
PREMIUM REVENUE<\/h6>\n
\nAD-SUPPORTED REVENUE<\/h6>\n
\n![](\"https:\/\/www.musicbusinessworldwide.com\/files\/2024\/04\/Screenshot-2024-04-23-at-11.50.24-80x45.jpg\")
<\/a><\/figure>\n
\nPROFITABILITY<\/h6>\n
\n![](\"https:\/\/www.musicbusinessworldwide.com\/files\/2024\/04\/Screenshot-2024-04-23-at-11.09.33-80x45.jpg\")
<\/a><\/figure>\n
\n
\n