Swedish music streaming service Spotify has surpassed 500 million monthly active users for the first time. This was facilitated by the company's entry into new markets.
The number of monthly active users of Spotify's audio streaming service increased to 515 million in the first quarter of 2023, exceeding the company's expectations and analysts' forecast of 500 million, according to Refinitiv's IBES data. This is reported by Reuters.
The number of premium subscribers, which represent the majority of Spotify's revenues, increased by 15% to 210 million, surpassing forecasts of 206 million. The forecast of 217 million premium subscribers for the current quarter also exceeded expectations of 212 million. The company expects the number of users to increase to 530 million.
In a presentation to investors in New York, Spotify founder Daniel Ek outlined plans to reach one billion users by 2030 and achieve $100 billion in annual revenues. The company also promised high returns from a costly expansion in the podcast and audiobook market.
Spotify's quarterly revenue of 3.04 billion euros ($3.35 billion) did not meet analysts' forecast of 3.08 billion euros, and the loss was greater than expected, the agency writes. Gross margin decreased to 25.2% from 25.3% in the previous quarter. Spotify's revenue forecast of 3.2 billion euros for the current quarter was also below expectations of 3.26 billion euros.