Spotify Technology’s second-quarter results, revealed on Tuesday, outperformed predictions for both monthly active users and subscribers by a substantial margin. The company also forecast that by the conclusion of the following quarter, 572 million people would be using the service on a monthly basis.
Since announcing plans to gain 1 billion users by 2030 and earn $100 billion (about Rs. 8,18,900 crore) in revenue annually, Spotify has been growing swiftly. The company’s costly expansion into podcasts and audiobooks has harmed profitability.
The number of premium subscribers to Netflix, who generate the majority of the company’s revenue, increased by 17% to 220 million, exceeding expectations of 216.6 million.
The main causes of the surge were marketing campaigns and a spike in listener sign-ups in countries throughout Asia, Latin America, and Europe.
However, the company’s quarterly sales, which were just EUR 3.18 billion (about Rs. 28,700 crore), or about Rs.
On Monday, Spotify raised the price of its premium plans in a number of nations, although the firm believes the price increases will have little impact on the quarter’s revenue.
For the current quarter, it projects 224 million premium users and EUR 3.3 billion (about Rs. 29,800 crore) in revenue. Analysts projected 3.40 billion euros in revenue (about Rs 30,700 crore) and 222.4 million users.
Shares rose by 2% in early trading.
Spotify’s forecast and experts’ projections of 526.8 million monthly active users were surpassed in the quarter with 551 million active users.
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