Spotify posted its monetary report for the ultimate quarter of 2022 and there may be some excellent news and a few unhealthy information. First, the excellent news. It beat expectations and had 205 million paying subscribers on the finish of the yr, making it the primary streaming service to cross the 200 million mark.
Its month-to-month lively customers (MAU) reached 489 million, this contains the subscribers utilizing the ad-supported tier. For comparability, Spotify had 195 million premium tier subscribers on the finish of Q3 final yr and 456 million MAU. The addition of 33 million MAU was Spotify’s largest-ever This autumn development.
Now for some unhealthy information. “We at all times knew that 2022 could be an funding yr and 2023 shall be a yr the place we might decelerate the investments and thereby working expenditure whereas income retains on climbing,” Chief Monetary Officer Paul Vogel stated in an interview.
The corporate expanded into podcasts and audiobooks, which incurred new prices. This led to This autumn loss to balloon from €39 million in 2021 to €270 million final yr. This was attributed to greater promoting prices and hiring new workers – although final week Spotify introduced that it will scale back its workforce by 6%, round 600 folks.
Breakdown by area: Month-to-month Lively Customers • Premium Subscribers
The overall income for 2022 was €3.2 billion, up 18% yr over yr. of that €2.7 billion was from premium subscriptions. Coming into the podcasting enterprise is proving to be a clever choice as it’s quoted as one of many causes that Spotify’s ad-supported income rose to €449 for the quarter.
The corporate predicts that it’ll move the half a billion customers mark by March and that it’ll improve its premium subscribers to 207 million (CEO Daniel Ek explains that Q1 is at all times the smallest quarter when it comes to development for the corporate).
Trying to the longer term, the purpose for this yr is to scale back the working loss. The purpose for the subsequent few years is to achieve 1 billion customers by 2030.
Right here’s one fascinating word: the eighth annual Spotify Wrapped marketing campaign drew in 150 million MAU, up 30% YoY, and coated 111 markets.
