Spotify Surpassed Market Expectations with Record User Growth

Spotify Continues to Increase Its User Count

The Swedish digital music streaming giant Spotify Technology SA reported a record user growth in its latest quarterly report, surpassing Wall Street analysts' expectations.

Record User Count

The company announced that in the October-December 2023 period, it added 38 million new users, bringing the total monthly active user count to 751 million. This figure exceeded the average forecast of analysts, which was 745.2 million users.

Financial Performance

Spotify's operating revenue was reported at 701 million Euro (approximately 835 million dollars), which was above the analysts' expected 639.1 million Euro. The gross profit margin also reached a record high of 33.1.

Competitive Advertising Revenues

However, advertising revenues showed a 4 percent decrease compared to last year. Spotify predicted that the total monthly active user count would be 759 million for the first quarter, which also exceeded analysts' expectations.

Future Vision

The company estimates that due to currency fluctuations, it will generate revenues of around 4.5 billion Euro in 2024. Additionally, it aims to become an entertainment hub by expanding from music streaming over the last twenty years to podcasts, audiobooks, videos, and physical books.