Spotify Now Has 144 Million Premium Subscribers, Thanks To New Marketplaces
Spotify on Thursday added more subscribers in the third quarter than Wall Street had expected and forecast strong growth in the current quarter as more users tune in to its music streaming service.
With more than twice as many subscribers as its closest rival Apple Music, Spotify It has rapidly expanded into European markets after its launch in India and the Middle East last year.
Cousin subscribers, who make up the majority of its revenue, were up 27 percent to 144 million from the prior year. On average, analysts expected the company to have 142.5 million paid subscribers, according to IBES data from Refinitiv. Total monthly active users increased 29 percent to 320 million.
The company expects total premium subscribers in the range of 150 million to 154 million for the fourth quarter. Analysts expected it to reach 151.5 million.
Spotify attributed the increase in subscribers to its recent launch in new markets such as Russia, which it called the “most successful new market launch” to date.
The company, which earns income from paid subscriptions and shows ads to non-paying users, saw its ad business grow back after the global pandemic hit ad growth earlier in the year.
Revenue increased 14 percent to EUR 1.98 billion (approximately Rs. 17,268 crore) in the quarter. Analysts were expecting revenue of 2 billion euros (approximately 17,442 crore), according to IBES data from Refinitiv.
Excluding the impact of currencies, Spotify said its quarterly revenue was “slightly better than expected.”