Swedish company Spotify Technology, known for its eponymous streaming audio service, reported subscriber growth in the second quarter of 2024 that exceeded analysts’ forecasts. And this is despite the fact that the company raised the rates for its paid plans, writes Bloomberg.
Image source: deepanker70/Pixabay
The company announced Tuesday that its paid subscribers grew 12% year over year to 246 million, beating Wall Street analysts’ forecast of 245.2 million subscribers. Spotify’s shares jumped 15% on the news.
In an effort to boost profitability, Spotify has cut costs significantly over the past year, cutting staff and abandoning podcast production. The company has also changed its approach to content and pricing, raising prices and planning new subscription tiers, as well as giving premium subscribers 15 hours of free audiobooks per month in late 2023.
The company expects the number of active users to be 639 million in the current quarter, below analysts’ forecast of 650.45 million. The company’s forecast for paid subscribers is 251 million, in line with expert estimates.
Spotify CEO Daniel Ek said in a video posted to social media platform X that it was “a really great quarter,” noting that the updates made helped the platform become “more fun.” Among the updates, Ek cited were the introduction of countdown pages that allow users to bookmark upcoming audiobook releases, and the introduction of Daylist, an algorithm-driven, ever-changing personalized playlist.
Spotify’s revenue rose to €3.81 billion in the second quarter, in line with analysts’ expectations. Earnings were €1.33 per share, compared to analysts’ forecast of €1.04 per share. The streaming service’s total active users grew 14% in the quarter to 626 million.
If you notice an error, select it with your mouse and press CTRL+ENTER.
