Spotify’s Q4 2022 financial report comes a week after the company announced it was laying off 6% of its staff (just under 600 employees). However, the report shows that Spotify’s financial position hasn’t deteriorated much in recent months.
According to the report, Spotify’s paid subscribers increased to 205 million as of December 31, up 14% from a year ago.
The number of active users per month increased to 489 million – by 20%. This is higher than the third quarter forecast, when the company said it expects to reach 202 million premium subscribers and 479 million active users.
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Spotify posted an operating loss of €231m in Q4. This value is not much different from past results. The company has traditionally prioritized investment in growth over quarterly earnings. An operating loss of €300 million was previously forecast.
The average revenue per paying subscriber is now €4.55, up 3% from last year, but slightly down from €4.63 in the previous quarter.
The company remains tight-lipped about Spotify Hi-Fi, the lossless audio quality subscription that was announced at Spotify’s big event nearly two years ago. Spotify may have had to rethink that opportunity in light of competition from Apple Music and Amazon Music, which now offer lossless music streaming at regular rates.
Spotify is by far the largest music streaming service in the world. The closest competitors, Apple Music and Amazon Music, had 60 million paying users in 2019 and 55 million in 2020, respectively, according to Music Ally.
The full presentation of the report can be found here (PDF).
Spotify Wrapped 2022: the best artists, songs and podcasts of the platform. As well as the opportunity to sum up your own “musical” results of the year
Source: The Verge
