Summary

  • Spotify’s subscriber base grew 12% to 268 million paid users.
  • Despite impressive gains, stock dipped 6% due to missed earnings expectations.
  • CEO Daniel Ek is riding the wave of strong user engagement but warned there might be “some noise” in the short term.

In a world where everyone has a playlist for every mood, Spotify just dropped some numbers that prove music streaming isn’t just alive—it’s thriving. The streaming giant’s subscriber base climbed 12%, reaching 268 million paid users. That’s 5 million more people jamming out with Spotify Premium since last quarter, as per Bloomberg’s report.

Spotify’s latest earnings report is music to investors’ ears. Monthly active users also grew to 678 million, up 10% from the previous year.​

A smartphone with the Spotify app open on a desk with a mug behind it


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Despite these impressive user gains, Spotify’s stock dipped 6% in premarket trading after reporting earnings per share of €1.07, falling short of the anticipated €2.13. Revenue rose 15% year-over-year to €4.19 billion, slightly below the projected €4.2 billion.

The shortfall was attributed to higher payroll taxes in certain regions and a dip in ad-supported revenue amid cuts in digital ad spending and unfavorable currency exchange rates. So, even though Spotify’s subscriber numbers and overall revenue look great, some investors are feeling a bit cautious. Why? Well, Spotify’s forecast for the next quarter wasn’t quite as stellar as some had hoped.

Next up? Even more growth

That said, Spotify’s CEO, Daniel Ek, remains optimistic, pointing to strong user engagement and retention. He did mention there might be “some noise” in the short term, which made some investors a little uneasy. Looking ahead, Spotify forecasts continued growth, projecting 689 million monthly active users and 273 million premium subscribers in Q2.

Overall, Spotify is still a major player in the music streaming world, and it’s not showing signs of slowing down. The platform is also expanding beyond just music, with a growing focus on podcasts and audiobooks.

Last week, Spotify expanded its AI Playlist feature in beta, something it first teased last year. Since playlists are kind of the heart and soul of the platform, this move shows it’s still all-in on using AI to make the listening experience feel more personal and engaging.