• Tuesday, February 27, 2024
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236 million music lovers paid for Spotify in Q4 2023

236 million music lovers paid for Spotify in Q4 2023

Spotify on Tuesday reported that its number of subscribers rose to 236 million in the fourth quarter of 2023, a 15 percent year-on-year (y-o-y) increase.

In an announcement post, the firm stated that it added 10 million premium subscribers in the quarter under review. Its number of monthly active users grew 23 percent to 602 million, a net addition of 28 million.

Both additions in monthly active users and subscribers were 1 million ahead of guidance, the firm noted. Spotify grew its revenue by 16 percent y-o-y to €3.7 billion in Q4.

Read also: Spotify plans to cut 1,500 jobs in latest round of layoffs

Operating loss was €75 million for the quarter, which was better than its guidance, the firm said. “Excluding one-time charges, we generated €68 million in adjusted Operating Profit, which is more than double the third quarter as the business continues momentum towards sustainable growth and profitability,” it clarified.

The firm added that its user engagement grew more than 40 percent y-o-y across 170 markets. According to reports, Ad-supported revenue came in at $538.62 million, up 17 percent YoY at constant currency.

The streamer’s number of paying subscribers rose to 236 million during the quarter, a 15 percent YoY increase, while Monthly active users rose 23 percent YoY to 602 million. According to reports, both numbers exceeded the company’s expected guidance by about 1 million.

The company’s €75 million quarterly operating loss was smaller than guidance. According to media reports, Spotify would have been more profitable in the quarter if not for the charges of $153.73 million it incurred for sacking 1,500 staff members.

In the reports, Daniel Ek, current Chief Executive Officer, Spotify clarified that the company’s push for efficiency resulted in 2,300 job cuts last year, as well as the shutting down of some Spotify programming – which will continue in 2024.

“Looking to 2024, you should expect a continuation of what you saw in 2023 – strong product development which leads to strong growth, but with an increased focus on monetisation and efficiency, which in turn drives profitability,” Ek said.

Read also: Spotify sees 284% surge in local music consumption in 2023

Ek further emphasised the company’s ongoing shift towards an efficiency-first mindset, urging a relentless focus on resourcefulness. He highlighted the importance of continually assessing and reallocating resources to maximize impact rather than simply acquiring more.