Spotify has released its second-quarter earnings report and it"s looking pretty great for the music streaming service. The company said that it saw revenues grow by 20% year-over-year to €3.8 billion driven by an increase in the number of Premium subscribers.
During the second quarter, Spotify saw its Monthly Active Users (MAUs) increase by 14% year-over-year to 626 million, with growth seen in all regions. Additionally, Premium subscribers grew by 12% year-over-year to 246 million.
Some of the factors that help Spotify achieve a profit include its improved music and podcast profitability, marketing spend, and lower personnel numbers and related costs following layoffs in 2023.
Spotify also mentioned that it introduced new product features and offerings during the second quarter. These included an expanded video podcast catalog, audiobooks in new markets, and a more affordable "Basic" Premium plan in select markets that don"t allow audiobook access.
During the second quarter, the company also unveiled Creative Lab, an in-house ad creative agency, and Quick Audio, a generative AI tool for advertisers. With these, Spotify hopes to expand its user base and improve its ads business.
Looking forward, Spotify is expecting the third quarter to be good. It is predicting continued growth in both revenue and subscribers. It has forecast total revenue to reach €4.0 billion and total premium subscribers to reach 251 million users. While these figures will please investors, Spotify warns that these are forward-looking statements and are subject to substantial uncertainty.
Spotify reports a diluted earnings per share of €1.33 which works out to $1.44 right now. Analysts, according to Yahoo Finance, predicted that earnings per share would only hit $1.15 this quarter so Spotify has exceeded expectations by about 25%; that"s not too bad.
At market close on Monday, Spotify"s share price was at $295.45. In pre-market trading following the publication of the report, the stock is up 13.9% at $336.51 at the time of writing.
You can read about some of the most recent news and updates to Spotify by visiting this link here.
Source: Spotify (PDF)