Spotify's 2023 revenue rose 16% year-on-year to 3.67 billion euros ($4.05 billion), as growth in both monthly active users (up 23% to 602 million) and premium subscribers (up 15% to 236 million) beat expectations.
After a third quarter in which the streaming company turned a profit for the first time in a year, however, its operating loss was back in the red at 75 million euros ($82.7 million), albeit better than her guidance. Spotify says that excluding one-time charges its operating profit would have been 68 million euros ($75 million), more than double the 32 million euros ($34 million) it generated in the third quarter of 2023.
Spotify added 10 million subscribers in the fourth quarter, beating expectations by 1 million, and added 31 million for the year. Its 602 million monthly active users were also 1 million ahead of guidance and represented 28 million additional users in Q4, which it said was the second-largest incremental fourth quarter in the company's history. It ended 2022 with 205 million subscribers and 489 million monthly average users.
Spotify has made a number of cost-cutting moves in the past year, including laying off 17% of staff in December – its third round of layoffs in a year – as it seeks continued profitability, as well as introducing its first price increase to its standard premium plans in over a decade. That helped push the company into the black in the third quarter, and Spotify said today: “With revenue and profitability trends turning favorable towards 2024, we believe the business is also positioned to deliver improved growth and profitability.”
Spotify also included some numbers from its hugely popular year-end Wrapped campaign, saying it attracted more than 225 average monthly users, with engagement growing 40% year-over-year in 170 markets. and said it added 200,000 audiobooks to the platform this year, a point of emphasis lately.
from our partners at https://www.billboard.com/business/streaming/spotify-q4-2023-earnings-revenue-monthly-users-subscribers-1235599927/
