On Tuesday, Spotify Technology released second-quarter numbers that comfortably exceeded projections for both monthly active users and subscribers, and it predicted that 572 million people would listen to the service on a monthly basis by the end of the following quarter.
The Company's Expensive
Spotify
has been expanding quickly since announcing intentions to acquire 1 billion
members by 2030 and generate $100 billion (approximately Rs. 8,18,900 crore) in
revenue annually. However, the company's expensive growth into podcasts and
audiobooks has hurt profitability.
In the quarter, there were 551 million monthly active users, exceeding Spotify's guidance and analysts' expectations of 526.8 million.
According
to IBES data from Refinitiv, the number of premium subscribers—which provide
the majority of the company's revenue—rose 17% to 220 million, above
predictions of 216.6 million.
As
more listeners signed up in nations around Europe, Latin America, and Asia, the
rise was fueled by marketing initiatives.
The Company Monday Earning:
The
company's quarterly sales, however, came in at just EUR 3.18 billion (approximately
Rs. 28,700 crore), falling short of analyst expectations of EUR 3.21 billion
(about Rs. 29,000 crore).
Spotify
increased the cost of its premium plans on Monday in a number of different
countries, but the company anticipates that the hikes would have little effect
on the quarter's revenue.
It anticipates 224 million premium customers and EUR 3.3 billion (approximately Rs. 29,800 crore) in revenue for the current quarter. Analysts anticipated 222.4 million subscribers and 3.40 billion euros (approximately Rs. 30,700 crore) in revenue.
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