Streaming music service provider Spotify released its financial report for the first quarter of 2022. Spotify said it passed the 500 million monthly active users mark for the first time, thanks to the music streaming company’s expansion into more markets.
The financial report shows that Spotify’s total revenue in the first quarter was 3.04 billion euros, an increase of 14% year-on-year; and Spotify’s net loss for the quarter was 225 million euros Higher than expected, while the net profit of the same period last year was 131 million euros, and the gross profit margin dropped to 25.2% from 25.3% in the same period last year.
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First quarter results:
Total revenue was 3.0 billion euros, up 14 percent year-on-year, below the company's forecast of 3.1 billion euros, mainly because the macroeconomic downturn affected Spotify's advertising revenue. Gross margin was 25%, compared to 25.2% in the prior year period. An operating loss of 156 million euros compared with an operating loss of 6 million euros a year earlier. The net loss was 225 million euros, compared with a net profit of 131 million euros a year earlier. The loss per share was 1.16 euros, compared with a profit per share of 0.21 euros in the same period last year.
Spotify’s number of monthly active users rose to 515 million in the first quarter, up 22% from a year earlier, beating Spotify’s guidance and analysts’ forecast of 500 million, according to IBES data from Refinitiv. This is the first time Spotify has surpassed the 500 million monthly active user mark.
According to reports, the current number of Spotify paid users has reached 210 million, a year-on-year increase of 15%, higher than Spotify’s expected 207 million and analysts’ expectations of 206 million, mainly due to the strong performance of the European and Latin American markets.
Looking ahead to the second quarter, Spotify expects its revenue to reach 3.2 billion euros, below analysts’ forecast of 3.26 billion euros. By then, Spotify is expected to have 530 million monthly active users.