Spotify have announced their results for the third quarter of 2023. It appears they have exceeded targets and are on track for a strong final quarter too.
Spotify recently published their third quarter results showing their performance over the last few months. They claim they have delivered strong results, which suggests their growth will continue over the final quarter. Potentially leading them into success in the new year.
Within their report it shows the music streaming store have exceeded targets set for them by their industry experts. Finally, seeing them returning a profit compared with their recent losses. However, with that being said, their losses did seem to come for valid reasons.
Spotify are known for ploughing their money back into their company. When they receive earnings, it goes into a new project or adapting new features. This has served them well in the long run. They may have previously lost money, but now they’re profiting again.
Spotify’s Q3 results have exceeded targets
In the third quarter, Spotify’s Monthly Active Users (MAU) were up 26%. This saw their numbers reach 574 million which is 2 million ahead of their target. It marks their second largest Q3 net addition performance in Spotify’s lifetime.
As well as this, the number of subscribers has risen 16% YoY. Spotify were at one stage losing paid subscribers with many listeners downgrading to the free plan. However, now it’s regaining strength and their growth of 6 million was again 2 million above target.
Spotify’s total revenue has been recorded as 11% higher YoY. It reached €3.4 billion, which has again exceeded expectations. Alongside this, their gross margin has finished higher than they hoped. It reached 26.4%.
Spotify reflect on new user features
Self-proclaimed #1 audio network worldwide, Spotify do have a lot to show for themselves. They’ve been part of the New York Fashion Week, providing the official playlist. Also still being in partnership with FC Barcelona shows it’s important to collaborate outside your niche.
Within their most recent quarter, Spotify have also shown growth in their products. With some being brand-new features, and others being adaptations and expansions of already existing ones. They’re constantly working on new ways to enhance the platform.
Spotify Jam was introduced to allow friends to listen together through collaborations. Along with this they introduced DJ to 50 markets worldwide, and added new playlist listening options. These can be seen below through Spotify’s card.
It will be interesting to see what Spotify propose in their next quarter. Will they add more features and continue to adapt their current ones? Or, will they take a break from this and just focus on what they already have, allowing them to grow their funds?
Spotify seem to constantly add new ideas to the mix, some which seem similar to ideas they’ve already made happen. Perhaps a cooling-off period would be beneficial. After all, it’s likely that a lot of their users aren’t even up to date with what they have added this year.
Seeing the success of such a large music streaming platform though is only ever a good thing. It provides a safe space for independent music artists to share their hard work and be rewarded and that’s something we’ll always support.