Swedish streaming giant Spotify reaches 777 million active users
Streaming giant Spotify said Tuesday that it had 777 million monthly active users at the end of June, 16 million more than in the previous quarter but a million fewer than forecast.
Swedish streaming giant Spotify announced Tuesday that it had reached 777 million active users as of June, an increase of 16 million from the previous quarter but 1 million fewer than initially predicted. The company had forecast a higher figure for its growth in the third quarter, anticipating around 11 million new net subscribers, which turned out to be a cooler reality for investors. Spotify's shares dropped 2.6 percent in opening trading on the New York Stock Exchange as a result.
In the quarter, Spotify had 300 million paying subscribers, a 7 million increase from the previous quarter and 1 million more than expected. The group's quarterly operating profit surged by 61 percent, reaching 655 million euros ($754 million in American dollars). Revenue also rose by 14 percent to 4.8 billion euros, aligning with the company's expectations.
Alex Norström, Spotify's co-chief executive, attributed the strong numbers to a "business that is healthy and compounding, and opportunities only we are positioned to pursue." He emphasized the company's pervasive presence in people's daily lives, from commutes and workouts to studying, gaming, dinner parties, and sleep. Spotify plans to capitalize on this unique position by frequently updating its offerings, including recently launching "Personal Podcasts" – AI-generated podcasts tailored to individual users.
The company will also allow dedicated subscribers to purchase concert tickets before general sales commence.
Written by urgent.news from The Local Sweden's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
