In its second quarter results announced yesterday, July 27, Spotify has confirmed that it added 6 million net premium subscribers to its user base in the second quarter, bringing its global subscriber total to 188 million.
This figure exceeds the company’s forecasts
Spotify said the result was “above our expectations, with the help of promotions and home plans.”
With 2 million cumulative net subscribers in the first quarter, Spotify added a total of 8 million additional net Premium subscribers in the first six months of 2022.
Spotify also reached 433 million monthly active users (MAU)a better than expected result at the end of June, compared to 422 million at the end of March.
“Net additions of 19 million represented our strongest growth in the second quarter,” the company said, citing factors such as revivals in Europe and what it described as “the strength of Generation Z in Latin America.”
In financial terms, Spotify generated US$3.05 billion in quarterly revenue in the second quarter, up 23% from a year earlier.
The company posted gross profit of $750 million, reflecting a gross margin of 24.6%, down from the 25.2% margin it posted in the second quarter.
The average revenue per user they now sit around $4.60, up from $4.44 last quarter
It posted an operating loss of $207 million in the second quarter, slightly lower than the forecast operating loss.
Spotify also provided some forecasts for the third quarter of 2022, stating that it expects to add another 6 million net new premium subscriptions in the third quarter, to reach 194 million.
It also expects to add 17 million net MAUs in the quarter, bringing its total user base to 450 million as of the end of September.
Despite Spotify’s global subscriber growth beating expectations, CEO daniel ek told analysts that even the company couldn’t escape the impact of the current economic slowdown, as it tracked consumer spending.
“While the macro environment continues to present uncertainty, we are not currently seeing any material impact on our expectations for users or undergrowth from the economic downturn. In fact, we are seeing several markets trend ahead of our forecasts,” he insisted.
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Spotify reaches 188 million net subscribers in the second quarter of 2022 – Music Industry