Spotify’s Q2 2023 figures shows a strong quarter as its revenue and monthly active users both beat the company’s guidance.
Swedish audio streaming giant Spotify has released its earnings report for Q2 2023, pointing to a strong quarter for the company.
According to the report, Spotify’s monthly active users (MAUs) jumped 27% to 551 million, recording a net addition of 36 million, which beat the company’s guidance by 21 million, pulling in an all-time high. All Spotify regions outperformed expectations and recorded higher MAU net additions compared to the same period last year.
The report also states that Spotify subscribers hit 220 million after growing 17% year-over-year (YoY). The net addition of 10 million surpassed the company’s guidance by 3 million, making the quarter Spotify’s highest-ever Q2 for subscriber growth. Furthermore, Spotify reported an 11% YoY growth to €3.2 billion, exactly on par with guidance.
Spotify also recorded an adjusted operating loss of €112 million, lower than the €129 period the company’s guidance expected. Gross profit increased 9% from Q2 2022 to 766 million but remained unchanged from Q1 2023. According to the company, “Spotify had a very strong quarter. We beat guidance and welcomed more users and subscribers than expected, with growth continuing to come from markets all over the world.”
Spotify is forecasting another 4 million Premium subscribers for Q3 this year. It also expects to add 21 million MAUs in total. Currently, Spotify’s anticipated revenue for Q3 is €3.3 billion, slightly higher than the reported figure for Q2.
Spotify Cut Staff Count and Increased Prices in Q2 2023
On Monday, Spotify increased its Premium subscription price in the US from $9.99 to $10.99. The increase comes following intense pressure on music streaming services from players in the music industry. Unlike Apple Music, Deezer, and other competitors that have increased prices at different points in the past, this is Spotify’s first increase since it launched in the US in 2011.
In an official blog post announcing the change, Spotify explained that the increase is necessary so the company can continue to innovate as the market landscape changes. According to Spotify, the change will “help us to continue to deliver value to fans and artists on our platform.”
Last month, Spotify revealed plans to reduce its staff headcount by 2%, affecting about 200 employees. The company said affected staff will get severance packages with access to outplacement support and healthcare coverage.
In January, the company announced a layoff plan, noting that it was necessary because of the general economic downturn. Spotify had also laid off 38 staff from the Parcast and Gimlet Media podcast studios, absorbing both into its Spotify Studios. The company did this despite highlighting in an official publication that it has more than 100 million Podcast listeners and is the most-used audio podcast platform in most of the world. Spotify also announced it has grown its podcast content from 200,000 to over 5 million shows. The publication states that Spotify is the number 1 podcast publisher in the US.