CAPE TOWN – Spotify on Wednesday released its second-quarter earnings report for 2019 and the company believes its out-performance was broad based, with most of their geographic regions growing faster than expectations.
The company reported monthly active users (MAUs) grew to 232 million this quarter, increasing by 29 percent compared with last year’s second quarter, and up from 217 million in the first quarter of 2019.
Spotify also saw a 31 percent increase in premium subscribers, meaning 108 million people worldwide now pay to use the service and all its features.
The company further noted that “tens of millions” now stream podcasts on its platform, with podcast audiences growing by 50 percent the first quarter.
Spotify said: "Timing of certain global music releases yielded some incremental benefit, as did our launch on PlayStation consoles across the Middle East and Latin America.
"As a company, our goal is to continually innovate by testing and learning from new product launches. During Q2, we launched a number of new product initiatives across our major regions. Of note, we rolled out Spotify Lite more widely, and this offering is now available in 36 markets."
Here are the company’s expectations for the third-quarter:
- Total MAUs: 240-245 million
- Total Premium Subscribers: 110-114 million
- Total Revenue: €1.57-€1.77 billion
- Gross Margin: 23.2-25.2%
- Operating Profit/Loss: €2-€(78) million
How it plans to achieve this is with the new look “Your Libary” update, podcast partnership with the Obama’s production company Higher Ground Audio and its new commute-optimised “Your Daily Drive” feature will contribute to an even better audience experience.
BUSINESS REPORT ONLINE