Spotify’s Total Monthly Active Users up 31% Y O Y
Its ad-supported revenue stands has increased 23% Y O Y
Spotify Technology has reported its financial results for the fourth fiscal quarter of 2019 ending December 31, 2019.
For the third consecutive quarter, the total MAU growth has accelerated for for Spotify while Subscribers, Revenue, and Gross Margin all met or exceeded expectations.
The company statement says: “We continue to see exponential growth in podcast hours streamed (up approximately 200% Y/Y) and are now seeing clear indications that podcast usage is driving increased overall engagement and retention. We have seen early indications that our investments in podcasts are having a positive impact on conversion of free to paid users. Overall, the business performance remains strong, and we believe we are well positioned for growth in the coming year.”
Spotify’s Total Monthly Active Users has grown 31 per cent Y/Y to 271 million.
The financial report said: “For the third straight quarter, we have outperformed the high end of our MAU guidance range as top-of-funnel growth continues to accelerate. Growth re-accelerated across our 3 largest regions (Europe, North America, and Latin America), while the Rest of World segment remains our fastest growing. Of note, North America saw the fastest quarterly growth since 4Q’18. Seeing a re-acceleration in user growth, at our scale, is a strong signal to us of the health of our business. We know, from history, that strong MAU trends are a harbinger of future subscriber and financial growth.”
Spotify ended the year with 124 million Premium Subscribers globally, up 29% Y/Y and ahead of forecast. “This was the highest net add quarter we’ve ever experienced, and the fastest we’ve ever added 10 million subscribers. During Q4 we expanded our ‘3 months on us’ offer to new Family Plan subscribers, in addition to previous offers for Individual and Student.”
The total revenue of €1,855 million grew 24% Y/Y in Q4 with the consolidated revenue being in line with our expectations. The ad-supported revenue stands at €217 million, up 23% Y/Y.
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