Spotify announced its third quarter results for 2023, with an operating income of 32 million euros (currently about RMB 249 million). This is the first quarterly profit since 2021. Benefited from higher gross margins and lower marketing and personnel costs.
Spotify’s monthly active users increased by 26% year-on-year to 574 million; the number of subscribers increased by 16% year-on-year to 226 million, a net increase of 6 million; total revenue increased by 11% year-on-year to 3.4 billion euros, and gross profit margin reached 26.4%.
“Ad-supported revenue grew 16% year over year (+24% in constant currency), reflecting double-digit year-over-year growth in all regions,” Spotify said.
Music advertising revenue re-accelerated, up nearly 20% year-over-year, driven by increased impression sales and stable pricing. Podcast advertising revenue growth remained in the healthy double-digit range, driven by original and licensed podcasts as well and Spotify Audience Network saw significant year-over-year growth in sales impressions, but this growth was partially offset by soft pricing.”
Spotify has been tight on costs after spending more than €1 billion to build its podcast business, laying off 6% of its workforce earlier this year and raising prices on premium plans in several countries in July.
Spotify, which aims to reach 1 billion users and $100 billion in annual revenue by 2030, expects to have 235 million paying users and revenue of 3.7 billion euros in the last three months of the year.
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