Spotify now has 515 million monthly active users (MAUs), which is a 5% increase over the prior quarter and a 22% increase over the corresponding period last year.
This is the first time Spotify has claimed a user base exceeding 500 million users, with 210 million premium subscribers and 317 million on the ad-supported plan.
This represents a 40% ratio of paid to free listeners, a ratio that appears to be falling. For comparison, Spotify’s premium subscribers made up 46% of its overall user base. in 2019falling to 45% in 202044% in 2021, and 43% last year.
It’s unclear how many premium subscribers are able to switch to the ad-supported free tier due to the economic downturn, but it’s clear that Spotify’s ad-supported user base is outpacing its premium subscribers.
However, this does not translate into ad-supported revenue. Spotify’s figures show that while its ad revenue grew 17% year-over-year, it was actually down 27% from the previous quarter, with its total revenue down 4% (although up 14% year-over-year). base year).
The company acknowledged that its revenue growth fell below expectations due to “macro-related variability in our advertising business.”
Spotify Q1 2023 Earnings image credits: Spotify
However, Spotify wants to emphasize that its MAUs grew by 26 million users overall against a guideline of 15 million, making it the company’s largest first-quarter net growth and the second-largest quarterly growth in its history.
Another notable conclusion of his Report to shareholders for the first quarter of 2023 relates to your operating losses. While its losses this time improved from last quarter (€156 million vs. €231 million in Q4 2022), the company forecasts this trend to continue, with projected operating losses of €129 million. for the second quarter of 2023.
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