Spotify: after months of struggles, the firm attracts more subscribers than expected

© Spotify

Spotify recently increased its subscription prices. The company's financial results were therefore particularly eagerly awaited, to determine whether these recent price increases in France and other countries around the world would have a significant impact on its turnover. Today, the Swedish company reported results that were ultimately in line with expectations.

Cutting expenses at all costs

In recent months, Spotify has undertaken several internal projects to reduce expenses: laying off staff, reducing the marketing budget… Despite these profound changes, the firm nevertheless aimed for quite impressive results: 3.82 billion euros in turnover and a base of 632 million users.

© Unsplash/Felipe Pelaquim

Finally, Spotify fails to meet its goals, but only just. In total, turnover increased by 20% and stood at 3.81 billion dollars. The gross margin is impressive: it goes from 24% to 29.2%. The operating profit stands at around $266 million. As for users ? Spotify is unable to reach its desired 632 million users, but is nevertheless close to its objective with 626 million& ;#8217;monthly active users worldwide (14% more than last year).

Among these users, 246 million are subscribed to a paid offer: this is 1 million more than the firm's objectives. Overall, Spotify's results are therefore more in line with the objectives set, despite the layoffs and the downward revaluation of the marketing budget made during the quarter. The Swedish firm indicates that its number of users has increased in all regions of the world.

200% Deposit Bonus up to €3,000 180% First Deposit Bonus up to $20,000

Uncontested hegemony in the audio streaming market  ?

Such results, even if they do not directly meet the prior objectives, will always have a positive impact on a company. And Spotify is no exception: at the opening of the Wall Street stock market, the group's action soared by 15%, which corresponds to its strongest increase in 3 years.

© Presse-citron

In other words, Spotify remains the benchmark streaming service when we talk about music or podcasts. Especially since everything was not rosy at the company just a few months ago: at the same time last year, the Swedish giant was largely in loss of speed.

However, the colossal sums generated by the music streaming market do not seem ready to slow down, since Spotify benefits from a market that is favorable, but it is not the only one. Services like Spotify, Apple Music or Youtube Music generated 17 billion dollars in the USA in 2023, an increase of 7% compared to the previous year. previous year.

• Spotify is in great shape despite price increases and layoffs galore
• Swedish company reaches 626 million ;users (including 246 million paying subscribers)
• Spotify's revenue climbed 20%, reaching 3.8 billion d’euros

📍 To not miss any news from Presse-citron, follow us on Google News and WhatsApp.

27.2 M reviews

[ ]