Spotify had a record 205 million premium subscribers at the end of 2022

Spotify posted its monetary report for the remaining quarter of 2022 and there’s some excellent news and a few unhealthy information. First, the excellent news. It beat expectations and had 205 million paying subscribers at the end of the 12 months, making it the first streaming service to cross the 200 million mark.

Its month-to-month lively customers (MAU) reached 489 million, this consists of the subscribers utilizing the ad-supported tier. For comparability, Spotify had 195 million premium tier subscribers at the end of Q3 final 12 months and 456 million MAU. The addition of 33 million MAU was Spotify’s largest-ever This autumn development.

Now for some unhealthy information. “We always knew that 2022 would be an investment year and 2023 will be a year where we would slow down the investments and thereby operating expenditure while revenue keeps on climbing,” Chief Financial Officer Paul Vogel stated in an interview.

The firm expanded into podcasts and audiobooks, which incurred new prices. This led to This autumn loss to balloon from €39 million in 2021 to €270 million final 12 months. This was attributed to greater promoting prices and hiring new staff – although final week Spotify introduced that it could cut back its workforce by 6%, round 600 folks.

Breakdown by area: Monthly Active Users • Premium Subscribers

The whole income for 2022 was €3.2 billion, up 18% 12 months over 12 months. of that €2.7 billion was from premium subscriptions. Entering the podcasting enterprise is proving to be a smart choice as it’s quoted as one of the causes that Spotify’s ad-supported income rose to €449 for the quarter.

The firm predicts that it’s going to go the half a billion customers mark by March and that it’s going to enhance its premium subscribers to 207 million (CEO Daniel Ek explains that Q1 is all the time the smallest quarter in phrases of development for the firm).

Looking to the future, the objective for this 12 months is to cut back the working loss. The objective for the subsequent few years is to succeed in 1 billion customers by 2030.

Here’s one fascinating notice: the eighth annual Spotify Wrapped marketing campaign drew in 150 million MAU, up 30% YoY, and lined 111 markets.

Source | Via