STOCKHOLM (CelebrityAccess) – Spotify reported significant growth in its global Premium Subscriber base, which reached 246 million paying users in Q2 2024. This marks a 12% increase year-over-year (YoY) and a net addition of 7 million subscribers from the previous quarter, exceeding guidance by 1 million. Alongside this subscriber growth, Spotify posted its largest-ever quarterly profit.
In its latest financial results, Spotify highlighted improved monetization and record profitability. The company noted strong funnel conversion rates, especially in developed markets with recently adjusted pricing. Europe accounted for 38% of Spotify’s total premium subscriber base, North America for 27%, and Latin America for 22%.
Spotify’s total Monthly Active Users (MAUs) grew 14% YoY to 626 million, 5 million below its forecast of 631 million MAUs for Q2. Europe comprised 28% of the total MAUs, North America 18%, Latin America 22%, and the ‘Rest of World’ region 33%.
Financially, Spotify’s Premium revenue grew 22% YoY to $3.608 billion, driven by subscriber growth and a 10% increase in Premium ARPU to $4.97. This growth was attributed to price increases in multiple markets. Ad-supported revenue also rose 12% YoY to $490.97 million, contributing to a total quarterly revenue of $4.098 billion, a 21% increase YoY.
Spotify achieved a Gross Margin of 29.2% in Q2, up from 24.1% in Q2 2023, and posted a record-high operating income of $286.402 million. The company attributed its profitability to lower personnel and marketing costs and job cuts implemented in December 2023.
Chief Executive Officer (CEO) Daniel Ek expressed optimism about Spotify’s future, citing ongoing innovation and business growth. For Q3, Spotify projects 639 million MAUs and a Premium Subscriber base of 251 million, with an expected operating income of $439 million and a total revenue of $4.339 billion.
You can view Ek’s LinkedIn video post below.
