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Spotify (NYSE: SPOT) reported strong numbers and beat analysts’ expectations on Wednesday after reporting its second-quarter results.
Spotify has continued to invest in its advertising, and ad-supported revenue has grown 31% year-over-year to 360 million euros, reaching an all-time high of 13% of the total revenue for the quarter.
Premium subscribers grew 14% to 188 million, a net gain of 6 million (and 1 million above guidance), “aided by promotional intake and household plans,” the company said in announcing results. That included a loss of about 600,000 subs in Russia after Spotify fully exited the country in early April.
Total monthly active users grew 19% to 433 million, an adjusted net gain of 19 million in Q2 and 5 million above guidance — Spotify’s largest-ever Q2 growth. The company attributed the gains to reactivations in Europe, “Gen Z strength in Latin America” and marketing campaigns across the globe outside its core regions.
For Q3, Spotify projected total monthly active users reaching 450 million and Premium subscribers growing to 194 million. The company guided Q3 revenue to three billion euros with an operating loss of 218 million euros.
Earlier this month, Spotify announced the acquisition of the music-trivia game Heardle, modeled on the popular Wordle game
Source - Spotify
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