Even with the rise of numerous music streaming services, Spotify continues to attract users at an impressive rate, as the platform’s diverse content and personalized recommendations keep Spotify users engaged and satisfied.
Strongest first quarter since 2018
During the Q1 2022 earnings call, Spotify reported its “strongest” first quarter since going public in 2018. This accomplishment is particularly notable given the increasingly competitive landscape of the music streaming industry.
Spotify revealed that it now has over 500 million monthly active users, totaling 515 million. The company stated that monthly active users have grown by 22% since the same period last year. Additionally, premium subscribers increased by 15% year-over-year. Here’s a brief overview of the company’s performance:
- Monthly Active Users increased by 22% year-over-year to 515 million, driven by growth in both developed and developing markets, and nearly all age groups.
- Premium Subscribers rose by 15% year-over-year to 210 million, with strong performance across all regions, led by Europe and Latin America.
- Total Revenue grew 14% year-over-year to €3.0 billion, primarily due to subscriber gains.
- Gross Margin reached 25.2%, reflecting improved music and podcast profitability.
- Operating (Loss)/Income amounted to €(156) million, helped by lower marketing expenditures.
New features and redesign
Spotify’s Q1 earnings come after the company announced a major redesign of its smartphone app. The update introduces a new home screen, where users can enjoy quick previews of music, podcasts, and audiobooks. Additionally, it added a “Smart Shuffle” button, new discovery features in search, and an autoplay feature for podcasts.
Parts of the redesigned Spotify app have already been rolled out. While not all Spotify users have received the updated home screen, filtering the home screen by music, podcasts, or audiobooks enables the new, TikTok-like experience for many people.
Lastly, the company announced its decision to discontinue Anchor and integrate it into Spotify for Podcasters.
