Spotify just passed half a billion users! Q1 2023 report
Spotify just posted their first quarter 2023 earnings, updating the numbers of both their monthly active user and Premium subscribers.
Spotify’s Q1 2023 financial performance shows yet another quarter of strong growth, with record high users and subscribers.
As shown in the graphic above, Spotify’s monthly active users are now at 515 million, up from 489 million last quarter and up 22% year-over-year. This is the first time any music streaming service has passed half a billion users! Paying Spotify Premium subscribers reached 210 million at the end of March this year. This comes after they surpassed the 200 million mark in Q4 2022 and is up 15% year-over-year.
These numbers come alongside the infographics below, highlighting the biggest features Spotify announced in Q1 2023. These include celebrating two years since launching in South Korea, and of course the updates that came at Spotify’s second Stream On event in March, which brought with it artist promotional tools like Showcase and Discovery Mode, as well as other new features like Countdown Pages, Spotify Clips, AI DJ, and a redesigned mobile interface.
In their blog, Spotify went on to say that this is their strongest Q1 since going public in 2018:
- Monthly Active Users grew by 22% year-over-year to 515 million driven by strength in both developed and developing markets, and nearly all age groups.
- Premium Subscribers grew 15% year-over-year to 210 million with outperformance across all regions, led by Europe and Latin America.
- Total Revenue grew 14% year-over-year to €3.0 billion, led by Subscriber gains.
- Gross Margin finished at 25.2%, reflecting improved music and podcast profitability.
- Operating (Loss)/Income finished at €(156) million, aided by lower marketing spend.
Find the full earnings release here, or the webcast Q&A on Spotify’s Investor Relations site here. As usual, Spotify also posted a sizzle reel of audio trailers from the latest original and exclusive podcasts.
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