• Tue. Feb 27th, 2024

Spotify hits record 551 million active users amid rising costs – The Hollywood Reporter

Spotify hits record 551 million active users amid rising costs – The Hollywood Reporter

Spotify reported 551 monthly active users in its second quarter, adding 36 million from the previous quarter and hitting the company’s all-time high.

In addition, the music giant added 10 million paid subscribers, three million more than its guidance forecast and a second-quarter record of 220 million.

The company, which promises to focus on profitability, grew operating expenses to 247 million euros, missing the company’s guidance of 129 million. “The number was impacted by charges related to our efforts to streamline operations and reduce costs,” the company said. These charges are excluded from Q2 guidance, Spotify said. Gross margins came in at 24.1 percent compared to guidance of 25.5 percent.

The company’s revenue came in at €3.2 billion, in line with its guidance.

Spotify announced on Monday that it will increase the price on its premium plan, to $10.99 per month. The price increase puts the streaming service on par with Apple Music and Amazon Music (for non-Prime members).

Amid rising costs, Spotify has been taking a number of cost-cutting measures over the past 12 months. The streaming giant laid off 200 employees in June, after laying off 600 employees in January and announcing layoffs in October.

The company is also making programming cuts, including ending an exclusivity podcasting deal with Prince Harry and Meghan Markle in June. Spotify merged podcasting studios ParkCast and Gimlet into a single division, canceling 10 shows from the two companies in the fall.

More to come…

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