Spotify records 'stellar' quarter with a profit of $69 million
Spotify has announced a 3% quarterly rise in Premium subscribers, reaching 226 million, and a 4% growth in monthly active users (MAUs), totaling 574 million as of September 30. Both numbers surpassed the company's expectations. The increase in MAUs represents the second-largest third-quarter growth in Spotify's history. Moreover, the company's total revenue grew 11% YoY to €3.4 billion, exceeding guidance. This news follows the streaming giant's announcement of price hikes in the US and several other international markets.
Spotify CEO called it a 'truly stellar' quarter
Price hike was first implemented in July
In late July, Spotify implemented its first US price increase since its inception over 10 years ago, bumping the standard Premium subscription fee by $1 to $10.99. Other regions and subscription plans, including Duo, Family, and Student, also saw price adjustments. As a result, Spotify recorded a profit of €65 million (approximately $69 million) for the recent quarter, in contrast to a €166 million ($177 million) loss during the same timeframe last year.
No information on long-promised lossless streaming option yet
Although Spotify's latest earnings report is positive, the company has not yet disclosed when its long-awaited lossless streaming feature will be available. Initially announced in February 2021, over two and a half years ago, the company maintains that the feature is still in development but has not provided an official release date. Recent speculation indicates that lossless streaming may be included in a new $19.99 "Supremium" tier, along with other additional features.
