Spotify hits 751 million monthly users following 11% growth
Spotify reported a total of 751 million monthly active users in the last quarter. This represents a 11% increase from the previous year. The company added 38 million new users during the fourth quarter.
Paying subscribers grew by 10% to 290 million for the quarter.
Revenue reached €4.53 billion ($5.39 billion), marking a 7% increase year-over-year. Subscription revenue contributed an 8% increase to this figure. Revenue from the ad-supported segment saw a 4% decrease, totaling €518 million ($616.6 million). The gross margin improved by 83 basis points, reaching 33.1%.
The company attributed user growth to its year-end “Wrapped” campaign, which engaged over 300 million users and generated 630 million social media shares in 56 languages. New features on the free tier also contributed to the user increase.
Spotify has expanded its offerings beyond music streaming to include podcasts, audiobooks, and physical bookstores. It has introduced music videos, video podcasts, social features such as group chats, and the ability to share listening activity. Users can also book concert tickets and explore song backgrounds. Artificial intelligence features include an AI DJ and AI-generated playlists. Users can now exclude tracks from recommendations.
The company has focused on profitability by increasing subscription prices in the U.S. and Europe. New features have been added to the free, ad-supported tier, allowing users to search for and select specific songs.
New co-CEOs Gustav Söderström and Alex Norström have assumed leadership roles. Spotify projects 759 million users and 293 million paying subscribers for the current quarter.