- By Ashish Singh
- Tue, 24 Oct 2023 07:00 PM (IST)
- Source:IANS
Spotify has reported strong quarterly earnings, surpassing forecasts for both monthly active users and subscribers. It also reported its first quarterly profit since 2021. As per the reports, the company has made an operational income of 34 million dollars, because of increased gross margin and reduced staff expenses. If the reports are believed to be true, the company's July–September quarter margin increased by 26.4 per cent if compared to the previous year.
The company has already invested a massive amount in the podcast and is now looking forward to cost reduction which now includes the staff restructuring and increasing the subscription fees in select nations. The number of monthly active users increased by 26% to 574 million in the third quarter, exceeding both analyst and Spotify guidance, which had predicted 565.7 million.
Premium members, the company's primary revenue stream, increased by 16% to 226 million, exceeding estimates. Revenue for the third quarter of 3.36 billion euros was more than expected at 3.33 billion.
Due to growing revenue from music advertising, stable pricing, and an increase in impressions sold, the company's ad-supported revenue increased by 16%. Podcast advertising also saw a double-digit growth.
Spotify is well-positioned to reach its long-term goal of one billion customers and $100 billion in revenue annually by 2030, especially with an upbeat prognosis for the fourth quarter. The forecast predicts 601 million monthly listeners, 235 million premium customers, and revenue of 3.7 billion euros for the final three months of the year. These projections fall short of the predictions of analysts.