Spotify posted a profit last quarter for the first time since 2021

Spotify made a profit of 32 million euros in the past quarter. It is the first time since 2021 that the service has achieved a quarterly profit. The numbers of monthly active users and paying subscribers both grew above expectations.

Spotify recorded 574 million monthly active users in the third quarter of this year, the company reported when presenting its quarterly figures. That is 26 percent more than a year ago and 2 million more than the company expected. The number of paying users grew by 16 percent to 226 million, also 2 million more than expected.

This higher growth contributed to a higher turnover of 3.4 billion euros, 11 percent more than a year earlier. The service thus ‘returned’ to profitability, with a quarterly profit of 32 million euros. A year ago, the company made a quarterly loss of 166 million euros. Advertising revenue also increased by 16 percent last quarter compared to last year. In addition, Spotify announced price increases for its Premium subscriptions last quarter. For example, the price of an individual Premium account has been increased from 10 to 11 euros per month.

Spotify expects to grow again in the last quarter of 2023. The streaming service says it expects approximately 601 million monthly listeners and 235 million Premium subscribers by the end of this year. The company wants to have one billion monthly users by 2030.

Source: Spotify