Spotify’s revenues for 2023 grew 16% yr over yr, reaching 3.67 billion euros ($4.05 billion), as a surge in each month-to-month lively customers (up 23% to 602 million) and premium subscribers (up 15% to 236 million) beat expectations.
After a 3rd quarter through which the streaming firm turned a revenue for the primary time in a yr, nonetheless, its working loss was once more within the crimson, at 75 million euros ($82.7 million), albeit higher than its steerage; Spotify says that excluding one-time prices its working revenue would have been 68 million euros ($75 million), greater than double the 32 million euros ($34 million) in revenue it generated within the third quarter of 2023.
Spotify added 10 million subscribers within the fourth quarter, beating expectations by 1 million, and added 31 million for the yr. Its 602 million month-to-month lively customers additionally have been 1 million forward of steerage, and represented 28 million extra customers in This autumn, which it stated was the second-largest This autumn add within the firm’s historical past. It completed 2022 with 205 million subscribers and 489 million month-to-month common customers.
Spotify went by means of a sequence of cost-cutting strikes up to now yr, together with shedding 17% of employees in December — its third spherical of layoffs in a yr — because it seeks continued profitability, in addition to instituting its first value hike on its customary premium plans in over a decade. That helped the corporate into the black within the third quarter, and Spotify stated at present, “With income and profitability developments each inflecting favorably heading into 2024, we view the enterprise as properly positioned to ship bettering development and profitability.”
These one-time prices included €143 million in web severance associated and actual property optimization prices, the corporate stated.
Spotify additionally included some numbers from its hugely-popular year-end Wrapped marketing campaign, saying that it drew greater than 225 month-to-month common customers, with engagement up 40% yr over yr in 170 markets; and stated that it added 200,000 audiobooks onto the platform this yr, a degree of emphasis of late.
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