Spotify has announced its Q1 2023 financial performance, showing its outstanding performance across all key performance metrics. Spotify also shared that it witnessed the strongest Q1 in 2018 since the launch when it outperformed in all KPIs.
Monthly Active Users – Spotify has seen a major growth in the number of users of all ages in developing and developed nations. Spotify mentioned that the number of users grew by 22% year over year to 515 million.
Premium Subscribers- The number of premium subscribers grew by 15% year over year to 210 million. All regions have outperformed in this domain though it is led by Europe and Latin America.
Total revenue- This gain in subscriber number and other additional revenue sources have significantly driven the revenue to grow by 14% year over year to € 3.0 billion. This growth is led by subscriber gains.
Gross Margin- The profitability through the music and podcast has also increased reflected by the gross margin finished at 25.2%.
Operating(Loss)- The lower marketing spending and other spending have made Operating(Loss) close to €156 million.
If we talk about some of the new features and platforms that Spotify has launched including AI DJ, features for creators, design changes, exclusive podcasts, and some of the best music albums. These services have been a major cause to attract and retain listeners for a longer time. Spotify mentioned in the document that users’ consumption increased by 25% when they used AI DJ.
Creators have also been aided with some of the features to increase their reach and revenue. Showcase and Discovery Mode tools help artists to amplify their content with campaign and audience development. Some of the exclusive podcasts and shows have also helped in increasing user retention.
