Spotify Adds Record 38 Million Monthly Active Users

"Spotify reached 290 million paid subscribers in its fourth quarter, up 10 percent year over year. Overall, monthly active users hit 751 million, an increase of 38 million, marking the highest number of net adds in Spotify's history. Both users' numbers were above Spotify's guidance. The company attributed the growth in monthly active users to a successful Wrapped campaign, as well as enhancements to the free tier on mobile."

"Total revenue reached €4.5 billion, in line with Spotify's guidance, while operating income reached €701 million, above expectations. Shares were up 10 percent in pre-market trading Tuesday. Ad-supported revenue declined 4 percent year over year. Music advertising saw growth in impressions sold, but this was offset by softness in pricing. Podcasting growth grew sponsorships, but this was "partially offset by optimization of our podcasting inventory.""

"The company now reports more than 530,000 video podcasts, as it continues its big push toward video. Spotify also features more than 500,000 audiobooks in English language markets. Spotify expects 759 million total monthly active users in the first quarter, up eight million from the fourth quarter, and 293 million paid subscribers, up 3 million. Total revenue is expected to remain around €4.5 billion, while operating income will fall to €660 million due to €10 million in social charges."

Spotify reached 290 million paid subscribers, up 10 percent year over year, and monthly active users hit 751 million, up 38 million and marking record net additions. Total revenue was €4.5 billion, in line with guidance, and operating income was €701 million, above expectations, lifting shares pre-market. Ad-supported revenue declined 4 percent year over year as music advertising faced pricing softness despite higher impressions, and podcast sponsorship growth was partially offset by inventory optimization. Spotify reports over 530,000 video podcasts and 500,000 audiobooks in English markets. Guidance projects 759 million MAUs and 293 million paid subscribers for Q1, with operating income expected to decline to €660 million. Daniel Ek became Executive Chairman while Gustav Söderström and Alex Norström are co-CEOs.

Read at The Hollywood Reporter