Spotify has exceeded the guidance on user numbers and subscribers for the Q4 period.
Monthly active users increased by 23% year-on-year to 602 million. An extra 28m new users represented the second largest Q4 performance in the company’s history.
The number of subscribers increased by 15% year-on-year to 236m. The addition of 10m new Spotify subscribers contributed to a record full-year of net additions of 31m.
Spotify said that its Q4 promotion performed better than expected in terms of premium subscribers. Meanwhile, users engaging with the year-end Spotify Wrapped campaign grew more than 40% year-on-year across 170 markets.
Spotify’s total revenue increased by 20% year-on-year on a constant currency basis to €3.7 billion, in line with guidance.
Premium revenue grew by 21% year-on-year at constant currency to €3.17 billion. Ad-Supported revenue grew 17% to €501m.
The company’s operating loss of €75m for the quarter was better than its updated guidance.
Spotify had €143 million in charges associated with significant job cuts taken late in the quarter. Excluding one time charges, Spotify generated €68m in adjusted operating income.
The streaming giant noted that the adjusted operating income result was “more than double the third quarter as the business continues momentum towards sustainable growth and profitability”.
“With revenue and profitability trends both inflecting favourably heading into 2024, we view the business as well positioned to deliver improving growth and profitability as we progress towards delivering against our Investor Day goals,” Spotify stated in its shareholder presentation.
For Q1 2024, the guidance is for 618m monthly active users (a quarterly increase of 16m) and 239m premium subscribers (3m net new subscribers in the quarter).