Spotify membership up 31% despite heavy competition from Apple Music and Amazon Music

Spotify, the world’s largest music streaming service, today reported earnings results for the fiscal quarter ending December 31, 2019. Despite the heavy competition from Apple Music and Amazon Music, Spotify’s monthly active subscribers grew 31% YoY to 271 million. Spotify also noted that its growth re-accelerated across its 3 largest regions (Europe, North America, and Latin America).

Spotify’s premium paid subscribers are also growing. Spotify ended 2019 with 124 million paid users globally. In this quarter alone, Spotify added 10 million paid subscribers.

Total revenue of €1,855 million grew 24% Y/Y in Q4. Consolidated revenue was in line with our expectations with Premium slightly better and Ad-Supported slightly weaker than forecast. Premium revenue was €1,638 million, up 24% Y/Y, while Ad-Supported revenue was €217 million, up 23% Y/Y.

Spotify highlighted that it saw exponential growth in podcast consumption. More than 16% of Spotify’s monthly active subscribers now engage with Podcast content, and consumption hours in Q4 have grown nearly 200% YoY.

Spotify provided the following full year 2020 guidance:

  • Total MAUs: 328-348 million
  • Total Premium Subscribers: 143-153 million
  • Total Revenue: €8.08-€8.48 billion
  • Gross Margin: 23.2-25.2%
  • Operating Profit/Loss: €(150)-€(250) million

Source: Spotify

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