Spotify beats growth projections and posts quarterly profits

Spotify, the streaming giant, surprised the market with its impressive third quarter results. The numbers speak for themselves:

Monthly Active Users (MAUs): The company saw a 26% increasereaching the figure of 574 million users worldwide, exceeding expectations. It is no less notable that 21% of these MAUs are located in the Latin American region, highlighting growth in this area.

Premium Subscribers: Premium subscriber growth was equally impressive, increasing by 16% with a total of 226 million. Again, 21% of these are in Latin America. Net additions exceeded forecasts by 2 million, which highlights the company’s solid performance.

Total revenue: In terms of income, Spotify recorded an increase of 11% year-on-year, reaching 3.4 billion eurosexceeding analyst estimates and demonstrating the strength of its business model.

Gross margin: Gross margin stood at a solid 26.4%, exceeding expectations. This increase was due to improvements in podcasting trends and growth in Marketplace, among other factors.

Organizational chart: Spotify achieved operating income of €32 million, driven by higher gross margin and lower-than-expected operating costs in staff and marketing.

These results have propelled the company to its first quarterly profit since 2021, consolidating its position in the market. Despite having invested more than €1 billion in developing its podcast business and making cost adjustments at the beginning of the year, strict expense control has proven to be effective.

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In short, Spotify far exceeded expectations in terms of users, subscribers, revenue and gross margin.

This allowed the company to post an operating profit, and its projections for the fourth quarter indicate that it is on track to achieve its ambitious goal of 1 billion users and $100 billion in annual revenue by 2030. These impressive results cement Spotify’s position as a leader in the music streaming market.