Spotify hits user record at the end of the year

Swedish-based music and audio platform Spotify Technology recorded impressive growth in the October-December period, gaining 38 million new users. As a result, the platform's total monthly active user count rose to 751 million by the end of the year, successfully surpassing the 745.2 million figure projected by industry analysts.

According to the company's statements, the 701 million Euro operating income achieved in the final quarter exceeded expectations and strengthened Spotify financially. Furthermore, the gross margin rose to 33.1%, reaching the firm's best level to date. This rate is considered by investors as a significant indicator of the company's profitability momentum.

Spotify's goal of expanding its entertainment ecosystem with the music, podcast, and audiobook content it offers is noteworthy. However, there was a 4% decrease in advertising revenue compared to the same period last year. This situation stood out as a significant development regarding the course of advertising revenue during Spotify's growth process.

On the other hand, the company stated that it expects the number of monthly active users to reach 759 million for the first quarter of the coming year. This forecast also exceeds the estimates made by analysts. Spotify plans to keep its revenue at the 4.5 billion Euro level due to fluctuations in exchange rates.

In recent times, Spotify is positioning itself as a comprehensive entertainment hub by investing not only in digital music but also in podcasts, audiobooks, videos, and physical books. With this strategy, the company aims to further increase its user base on a global scale.

News Source: 12punto