Spotify reported on Tuesday that first-quarter revenue jumped 20% and gross profit topped 1 billion euros ($1.08 billion), returning the now 18-year-old streaming company to profitability and putting it on track to achieve its growth target for 2024.
Spotify reported 3.6 billion euros ($3.9 billion) in first-quarter revenue, up from 3.04 billion euros ($3.3 billion) a year earlier, and gross profit rose 31 percent to 1.004 billion euros ($1. 08 million dollars) from 766 million euros ($833 million). according to the filings.
CEO of Spotify Daniel Ek said revenue growth accelerated and the company posted strong profits in the quarter, while total monthly active users rose 19% to 615 million and premium subscribers rose 14% to 239 million — both compared to the first quarter of last year.
“As a mature company we are now consistently profitable, which is great news,” Ek said in a video posted on LinkedIn.
Spotify raised prices by $1 — to $10.99 a month for individuals, $16.99 a month for families — in the U.S., one of its biggest markets, last year for the first time, and is reportedly considering to raise prices again later this year. Bloomberg References. The initial round of new price increases – $1 a month for singles, $2 a month for twins and families – will hit the UK, Australia and Pakistan, among others, according to Bloomberg.
Those price increases helped Spotify reach profitability in the third quarter of last year. But in the fourth quarter it reported an operating loss of 75 million euros ($82.7 million). In its first-quarter earnings reported on Tuesday, Spotify was again profitable with 168 million euros ($181 million) in operating income.
While premium subscriber revenue of 3.247 billion euros ($3.5 billion) was up 20% compared to the first quarter of last year, it was up just 2% from the fourth quarter. Advertising revenue of 389 million euros ($419.8) was up 18 percent from last year's first quarter, but down 22 percent from the fourth quarter.
Monthly active users of 615 million for the quarter were up 19% from a year ago and up 2% from the previous quarter, but missed the company's target of 618 million in the quarter.
- Total revenue rose 21% year-on-year, or 20% to €3.6 billion on a constant currency basis.
- Premium ARPU was up 7% year over year on a constant currency basis.
- Gross profit margin increased by 27.6% and gross profit exceeded 1 billion euros for the first time in Spotify's history.
- Operating income ended at a record high of €168m (4.6% margin)
- Monthly active users grew 19% year-over-year to 615 million in year-over-year and quarter-over-quarter growth across all regions.
- Premium subscribers rose 14% to 239 million, driven by growth in the streaming giant's Family and Duo packages.
from our partners at https://www.billboard.com/business/streaming/spotify-q1-2024-earnings-profit-revenue-monthly-users-subscribers-1235663628/