Streaming platform Spotify has released its financial performance report for the second quarter of 2023, highlighting significant accomplishments in user engagement and subscription growth.
Monthly Active Users (MAUs) surged by 27%, reaching a tally of 551 million. Additionally, the net influx of 36 million users exceeded projected figures by 21 million, constituting an unprecedented peak in Spotify’s operational history.
The platform witnessed considerable expansion in its subscriber base, recording 17% year-on-year (Y/Y) growth to attain a total of 220 million subscribers. The acquisition of 10 million subscribers outperformed projections by 3 million.
In terms of finances, Spotify achieved a Total Revenue of €3.2 billion, mirroring an 11% Y/Y expansion that adhered closely to the foreseen trajectory.
Preceding the Q2 earnings disclosure, Spotify had anticipated incurring expenses as part of their initiatives to optimize efficiency and operational foundations. These expenses, linked with their strategies to streamline operations and contain costs, were not factored into the previous quarter’s Q2 guidance.
Despite these strategic undertakings, the organization sustained an Adjusted Gross Margin in accordance with projections, holding firm at 25.5%.
The Adjusted Operating Loss registered at (€112) million, surpassing estimations. Similarly, this figure excludes charges incurred in connection to actions aimed at operational streamlining and expenditure reduction.
