Spotify reported growth in its profits and in its number of subscribers

Although the earnings reports of several companies have followed a negative trend, Spotify is one of the technology companies that has successfully resisted the critical moment in the sector.

An increase in its income and in the number of subscribers confirms the good moment that the music and podcast streaming platform is going through.

Spotify resists the crisis, reporting higher profits and subscribers

Attributing success to successful marketing campaigns, a strong presence with young audiences in Latin America, and revival of long-standing subscriptions in Europe, Spotify reported a good economic pass during the last trimester.

The company’s revenue grew by 31% compared to last year, reaching 360 million euros. This figure translates into an all-time high of 13% of total revenue for the quarter.

Spotify’s profits during the second quarter of this year reached 2,860 million euros, a figure that exceeds 2,810 million expected by analysts.

In addition to the good economic results, the company reported growth in its number of paying subscribers, which rose to 188 million during the quarter that just ended. Counting the total number of active users, adding the free accounts, the figure rises to 433 million, representing a growth of 19% compared to the previous quarter.

The good performance that Spotify reported for the recent quarter differs quite a bit from the scenario raised by microsoft, google Y Goal, among other large companies in the sector. This can be justified in the area of ​​activity and business model of Spotify, which despite having an advertising element present in its formula, the main product is its Premium service, under subscription.

Despite the global economic crisis and the closure of its operations in Russia, the impact was not greater on this company. More serious consequences were evident in earnings per share, which registered a drop of 85 euro cents per share, against an estimated loss by analysts of 63 euro cents.

Spotify expects to add an estimated 17 million new monthly active users in the third quarter, bringing its total to 450 million, a company spokesperson said during the report. These expectations contemplate the incorporation of 194 million paid subscribers in the quarter, which implies an increase of 6 million. Under this scenario, the company expects its revenue to increase to 3,000 million euros.

“We continue to monitor the global macro outlook, but to date, we have not seen a real impact on our user or subscriber outlook”Spotify chief financial officer Paul Vogel said in the earnings report. “Specifically, we expect to see another quarter of acceleration in MAU net additions and expect subscriber net additions similar to that of the third quarter of last year,” he added.

Spotify is going through a good time and plans to continue growing. This is possible thanks to the users who reward the service with their preference, even when more and more platforms among their competition integrate options to listen to lossless audio, a feature that Spotify considered integrating, but that today is mired in the absolute uncertainty.