One thing to note about Spotify’s revenue from its premium subscribers is that, despite the overall rise, the total amount earned by the company per user was actually down year-on-year by around 3% to €4.29 per user.
The total revenue collected in the quarter was €2.331bn. There was still growth from the first quarter, too, with premium subscriptions up 6% and free users up 28% for a total quarterly growth of 9%. Premium subscriptions went up 17% year-on-year, while advertising-supported usage had increased by 110%, leading a total year-on-year growth of 23%. However, there was some cause for genuine cheer at Spotify. All these regions have been hard hit by COVID.”Īlthough Spotify did not immediately release what its initial predictions had been, data from Refinitiv suggests that the company had been hoping for somewhere in the region of 371.5 million MAUs and up to 174 million subscribers.
Spotify’s co-founder and CEO, Daniel Ek, speaking in a post-earnings call, blamed a slowness of uptake in non-traditional markets for the underperformance, saying: “Markets like India, Brazil and parts of South-East Asia lagged behind our expectations and we’ve also seen a slightly slower adoption rate in some of our newly launched markets. Separately, a user sign-up issue associated with a global third-party platform created unexpected intake friction, which also impacted MAU growth. COVID-19 continued to weigh on our performance in several markets, and, in some instances, we paused marketing campaigns due to the severity of the pandemic. “MAU performance was slower than expected due primarily to lighter user intake during the first half of the quarter. However, Spotify had hoped to do rather better. The platform now has 165 million premium subscribers and 365 million monthly active users (MAUs), which is not only up 20% and 22% respectively year-on-year, but is also up from the 158 million premium subscribers and 356 million MAUs in the first quarter of this year.
In the second quarter of 2021, Spotify did relatively well. Quarterly results: good, but could do better What is going to happen? What is the latest Spotify stock forecast?įirst a look at the results themselves. However, that was all about what has happened. The music streaming giant has been garnering a lot of new users throughout the various lockdowns and when its latest quarterly results came out on 28 July, there was a lot of interest. One of the platforms that people have been making use of is Spotify. Quarterly results: good, but could do betterĪs people have been largely confined to their homes in the past 18 months or so, it is not surprising that they have been turning to entertainment to help them through the worst of lockdowns and the pandemic.
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