Spotify announced a 19 percent increase in paid members for its premium service in the third quarter, beating Wall Street expectations, thanks to strong demand in Europe and North America. Premium members, which make up the majority of the company’s income, reached 172 million, slightly edging over analyst projections of 171.7 million.
The number of monthly active users increased by 19% to 381 million.
Spotify makes money from subscriptions and advertisements shown to non-paying customers. Advertisement revenue increased by 75% to EUR 323 million (approximately Rs. 2,810 crore) during the pandemic, and the company plans to add hundreds of people to raise advertising sales even more.
According to IBES statistics from Refinitiv, total revenue increased by 27% to EUR 2.50 billion (approximately Rs. 21,760 crore), exceeding analysts’ expectations of 2.45 billion.
Around 40% of Spotify’s premium customers are from Europe, while 29% are from the United States.
In an attempt to compete with Apple, the corporation has been substantially investing in its podcast business, and in April launched a paid subscription platform for podcasters in the United States.
Spotify now contains 3.2 million podcasts, up from 2.9 million at the end of the second quarter.
“While we have been persistent in our pursuit of becoming the world’s largest audio platform,” Chief Executive Daniel Ek said in a statement, “it is still early days and we are only getting started.”
The company’s current quarter revenue and premium subscription forecasts also exceeded expectations.
Spotify expects 177-181 million premium customers and revenue of EUR 2.54 billion (approximately Rs. 22,110 crore) – EUR 2.68 billion (about Rs. 23,330 crore) in the fourth quarter. Analysts anticipate EUR 2.62 billion in revenue (approximately Rs 22,810 crore) and 180 million users.
The company had a net profit of EUR 2 million (approximately Rs. 17 crore) a year ago, compared to a deficit of EUR 101 million (about Rs. 880 crore) the previous year.
Apart from this, you can read more Entertainment and Tech articles here: Discord RTC connecting, Apex Legends Wallpaper, Twitter Followers, Discord no route, GC Invoker Utility, Galaxy watch 4, How to save GIF from Twitter, Masteranime, Yesbackpage, how to change Kik username, Reach vs Impressions, how to delete apps on Apple Watch, Discord Commands, How to mute Discord on OBS, How to connect Discord to Spotify, Family Man season 2, Happy Season 3, Netflix download limit, how to share Netflix account, MP3Clan, F95Zone, Fallout 4 Anti Crash, how to delete PayPal account.