"Revenue came in at €4.53 billion ($5.39 billion), about 7% more than a year earlier, thanks to an 8% increase in subscription revenue. However, the company's ad-supported business saw revenue dip by 4% to €518 million ($616.6 million). Gross margin, an important metric investors watch for indications of improvements to Spotify's profitability, improved by 83 basis points to a record high of 33.1% as the company sold more ads for podcasts and music."
"It's launched music videos within the app as well as video podcasts, and has doubled down on its retention strategy by adding social features like group chats and letting users share what they're listening to. You can even use Spotify to book tickets to concerts, or explore the story behind songs. The company has also added AI features like an AI DJ, AI-generated playlists, and now lets users exclude tracks from being recommended to help them better tailor what they listen to."
Spotify reached 751 million monthly active users after adding a record 38 million new users in the fourth quarter, and paying subscribers rose 10% to 290 million. The Wrapped campaign engaged more than 300 million users and generated 630 million social shares. Quarterly revenue totaled €4.53 billion, up about 7%, supported by an 8% rise in subscription revenue while ad-supported revenue fell 4% to €518 million. Gross margin improved to a record 33.1% as the company sold more ads for podcasts and music. Leadership transitioned to new co-CEOs as Spotify broadened into podcasts, audiobooks, video, physical retail and AI-driven features.
Read at TechCrunch
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