The Q2 2023 revenue overview for Spotify is out. According to its quarterly report, the company gained 10 million customers, 36 million more MAUs, and 17.7% (€3.2 billion) in income.
In the message, Spotify said that it planned to spend more money to “become a more effective and stronger business.” In Q2, the company added 551 million MAUs, which was 27% more than what was projected.
It had 220 million subscribers in Q2, which was 3 million more than predicted. Q2 was the best for the company in terms of MAU and membership growth. Last year’s Q2 had 433 million MAUs and 188 million users. This quarter, growth was stable.
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Spotify’s Q2 earnings
The company’s Q2 earnings of £3.2 billion were great. The income went up by 11% from the previous year.
The company’s Q2 gross profit went up to 24.1% thanks to net charges of €44 million. These net charges were made because many podcast shows were taken down and there was too much space. It had a business loss of €247 million for the same reasons as the gross margin number.
After a good Q2, Spotify announced its plans for Q3. The memo says that the figures are subject to “substantial uncertainty.” It expects to add 21 million MAUs, bringing the total to 572 million. It hopes to gain 4 million premium subscribers, bringing the total to 224 million.
The estimated income is €3.3 billion. A 26% profit margin will be driven by podcasting and other cost-of-revenue growth. It predicts an operating loss of €45 million.
Spotify hiked premium subscriber prices by $1, which worried people that Africa would be next. To improve next quarter, it should investigate how pricing hikes can affect revenue.
Spotify’s second-quarter 2023 actions
Spotify accomplished more than just increasing subscribers and revenue. The platform gave UK and Irish customers an AI-driven DJ function to create the world’s best music market. It’s intriguing that this was that area’s most desired function.
The desktop mode’s Your Library and Now Playing sections now appear better and help users find their favourite songs and podcasts faster. Spotify added 74 languages to its mobile app for a more customised experience. Brands worldwide can use the site’s new Ad Analytics offering.
Afrobeats: Journey of a Billion Streams, a website that Spotify created, is documenting the Afrobeats music genre and its impact on the African continent and beyond. The site will feature Afrobeats playlists and podcasts. These will help users learn about the genre’s rapid growth.