Spotify is on track to realize its first-ever full 12 months as a worthwhile firm – to the tune of USD $1.5 billion.
The corporate yesterday (November 12) revealed its monetary outcomes and person numbers for the third quarter of 2024 (ended September 30).
The headline stat from the music streaming large: Spotify’s international Premium Subscriber base grew to only over quarter-of-a-billion (252 million) paying customers in Q3.
That was up 12%YoY, and up by 6million internet subscribers on the 246 million subs that SPOT counted on the finish of the prior quarter (Q2 2024).
The corporate’s 6 million internet subscriber additions in Q3 had been 1 million forward of steerage.
In 2024 year-to-date (to finish of September), Spotify has added +16 million internet paying subscribers. (It completed 2023 with 236 million paying subs.)
In the identical interval of 2023 (i.e. the 12 months’s first 9 calendar months), Spotify added +21 millionpaying subs to its attain.
Commenting on the corporate’s outcomes, Spotify Founder & CEO Daniel Ekstated: “We’ve by no means been in a stronger place, because of the excellent execution by our workforce. I’m extremely pleased with the way in which we’ve delivered and the progress we’ve made.”
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“We’re the place we got down to be — if not a little bit additional — and on a gentle path towards attaining our long-term objectives.”
Daniel Ek
Added Ek: “We’re the place we got down to be — if not a little bit additional — and on a gentle path towards attaining our long-term objectives.
“This relentless pursuit of innovation and dedication to progress units us as much as ship essentially the most helpful person expertise within the trade, whereas reinforcing the core strengths that make Spotify distinctive. I’m very enthusiastic about what lies forward for us.”
Month-to-month Lively Customers
Spotify’s complete international Month-to-month Lively Customers (MAUs) grew 11%YoY to 640million in Q3 2024 and by 2% (14m) in comparison with the earlier quarter (Q2 2024) when the platform counted 626 million MAUs.
The corporate’s 14 million MAU additions in Q3 had been additionally 1 million forward of steerage, with the Remainder of World and Latin America seeing the most important progress within the quarter (see beneath).
Premium income
When it comes to funds, Spotify reported that its Premium subscriber progress translated into Premium income of €3.516 billion ($3.861bn) in Q3 “regardless of higher than anticipated headwinds from unfavorable foreign money actions”.
Spotify’s Premium income was up 24% YoY at fixed foreign money (see beneath).
When it comes to subscriber efficiency geographically, Spotify reported progress throughout all areas with “outperformance” led by Europe (38%) and Latin America (22%).
Spotify noticed 38% premium subscriber progress in North America (see beneath).
Advert-supported income
Spotify’s ad-supported income, in the meantime, hit €472 million ($518.4m) in Q3, up 7% YoYat fixed foreign money (see beneath).
Spotify famous in its investor presentation that it noticed ad-revenue progress in a “difficult model setting” and that its music promoting was pushed by “progress in impressions bought, partially offset by softness in pricing”.
Profitability
The corporate’s Gross Margin completed at 31.1% in Q3.
In the meantime, Spotify posted a quarterly working earnings of practically half a billion {dollars} – at €454 million ($499m) – within the quarter.
That put Spotify’s YTD (i.e. first three quarters) working revenue in 2024 at EUR €888 million (approx USD $975m), and firmly on track for annual revenue within the full 12 months.
The truth is, Spotify’s now forecasting FY working revenue in 2024 of EUR €1.37 billion (approx $1.50bn).
When it comes to steerage for This autumn 2024, Spotify forecasts reaching 665 million MAUs, an addition of round 25 million internet new MAUs within the quarter.
The corporate initiatives its complete Premium Subscriber base to hit 260 million in This autumn, an addition of roughly 8 million internet new subscribers within the quarter.
Spotify forecasts an working earnings of €481 million for This autumn, and complete income of €4.1 billion.
All EUR-USD conversions made on the common price of the related interval in line with the European Central Financial institutionMusic Enterprise Worldwide
