SpotifyThere are results for the fourth quarter of 2022.
Music streaming company added another company 10 million net Premium to its user base in Q4 2022 (three months to the end of December), bringing total global paid viewers to 205 million won.
That 205 million subscribers marked a Paid Subscriber growth of 14% every year and 3 million won on the company’s instructions. According to Spotify, this growth is supported by promotional volume and household plans.
SPOT says it Premium Subscribers Growth outperformed the company’s guidance across all regions and led by Latin America.
Net additional subscribers for the whole year was 25 million (SPOT lost 2 million net additions due to the effect of leaving Russia).
Spotify totals Monthly active usersmix of paid users and ad-supported users, increased by 20% YoY 489 million won at the end of the fourth quarter of 2022.
That total number of MAUs is 10 million on SPOT guidance, and the company notes that 33 million additional net MAU represents their largest-ever Q4 MAU growth.
For the whole year, Spotify added 83 million MAU.
The company forecasts total MAU figures at the end of Q1 2023 (three months ending March 31) to be over 500 million.
Spotify says that its “outstanding performance” in terms of MAU growth in the ‘Rest of the World’ in Q4 led by India and Indonesia is the result of “successful marketing campaigns and the strength of OEMs”. “.
It also determined its MAU growth across nearly all regions in its eighth annual ‘Wrapped’ campaign and “better overall performance over the holiday season”. Spotify separately notes that the number of users interacting with Wrapped has increased 30% year over year across 111 markets.
There is also “strong” [MAU] growth among Gen Z listeners,” according to SPOT.
Financially, Spotify has created €3.2 billion in quarterly revenue, has increased 18% YoY with constant currency.
Fee/subscription revenue stands at €2.7 billiongo up 18% YoY with constant currency.
Spotify’s ad-supported revenue for Q4 2022 is €449 millionupward 14% YoY is at constant Currency and is led, according to SPOT, on the back of Podcasting gains. SPOT’s Ad Support revenue represents 14% of total revenue.
The company’s revenue growth, excluding the impact of changes in FX, far exceeded expectations.
Point total profit also completed the instructions above, at 25.3%which it said was “primarily due to lower-than-expected spending on new podcast content investments and a widespread preference for music”.
In terms of profitability, Spotify posted an operating loss of €231 million for the fourth quarter of 2022, according to Spotify, reflecting “higher staffing costs primarily due to headcount growth and higher advertising costs.”
These results come a week after Spotify announced that it is in the process of cutting more than 500 jobs worldwide, reducing “about 6% of headcount across the company”.
Spotify also confirmed last week that Dawn Ostroff, Head of Content & Advertising Business, will be leaving the company. Ostroff joined Spotify in 2018 as Content Director.
Global Music Business
