Spotify layed off 6 percent of its employees earlier this year and in July raised prices for its premium plans across several countries. This move came after spending more than a billion euros in building up its podcast business.
26 percent i.e. 574 million active users were recorded in the third quarter. According to reports, premium subscribers, who account for most of the company’s revenue, amounted to 226 million.
Revenue rose 11 percent to 3.36 billion euros, beating estimates of 3.33 billion.
Ad-supported revenue grew 16 percent from a year earlier as music advertising revenue re-accelerated, driven by growth in impressions sold and stable pricing, Spotify revealed. Podcast advertising also grew by double digits.
Spotify’s monthly user forecast for the fourth quarter sets the company firmly on target to reach 1 billion users and $100 billion of revenue annually by 2030.
Analysts had expected a forecast of 591.2 million listeners. Premium subscribers are expected to reach 235 million in the last three months of the year and revenue is estimated to reach 3.7 billion euros. Analysts expected a forecast of 232.4 million premium subscribers and revenue of 3.69 billion euros.