Spotify has just presented its third quarter results and the least we can say is that the streaming leader is doing well, with green indicators. First of all, the platform is showing double-digit growth in the number of users. Now, the streaming service is used by 640 million users per month, an increase of 11% compared to the same period in 2023. The number of paying subscribers is also increasing sharply, by 12% year-on-year, and now reaches 252 million.
Record profitability
And on the financial level, Spotify is also in great shape, since it evokes record profitability. In the third quarter, the platform’s revenues reached 4 billion euros, up 19% year-on-year. And gross margin hit a record high of 31.1%, up 473 basis points year over year. Operating profit also reached a record level of 454 million euros. Furthermore, the company is on track to “achieve its first full year of profitable operating income”.
“We have never been in a stronger position, thanks to the exceptional execution of our team. I am incredibly proud of the way we have worked and the progress we have made”said Daniel Ek, founder and CEO of Spotify. “We have achieved our goals, if not a little more, and we are on track to achieve our long-term goals.”
AI, video, audiobooks: how Spotify boosts its experience
Today, Spotify is no longer just a music streaming service. The platform continues to improve the podcast format and even offers audiobooks. It has also extended the availability of its audiobooks to non-English speaking markets, including France. Podcasts have been improved with new interactive features. And the platform strengthens the music listening experience with new features based on artificial intelligence.
- Spotify has just presented its third quarter 2024 results
- Company Reports Double-Digit Growth in Premium Users and Subscribers
- It also posted solid financial performance, with record operating income.
- Spotify is also on track to “achieve its first full year of profitable operating income”
