- Spotify has continued to invest in its advertising, and ad-supported revenue grew 31% year-over-year to 360 million euros, reaching an all-time high of 13% of the total revenue for the quarter.
- Spotify reported 433 million monthly active users in its second quarter, up 19% year-over-year and 5 million above guidance.
- Paid subscriber growth also beat guidance by a million users, growing 14% year-over-year to 188 million.
Spotify shares popped more than 14% on Wednesday after the company reported second-quarter 2022 earnings that beat analyst expectations on revenue and showed continued subscriber growth.
Spotify has continued to invest in its advertising, and
ad-supported revenue grew 31% year-over-year to 360 million euros, reaching an
all-time high of 13% of the total revenue for the quarter.
Despite the closure of its Russian operations, Spotify
reported 433 million monthly active users in its second quarter, up 19%
year-over-year and 5 million above guidance. The company said this growth can
be attributed to successful marketing campaigns, Gen Z strength in Latin
America and account reactivations in Europe.
Paid subscriber growth also beat guidance by a million
users, growing 14% year-over-year to 188 million.
"We're seeing several markets trending ahead of our
forecasts," Spotify CEO Daniel Ek said on the company's earnings call,
reiterating plans to proactively reduce headcount by 25%. Ek said that although
he is preparing for things to get worse, he is optimistic based on what he is
currently seeing.
Spotify expects to add approximately 17 million new monthly
active users in the third quarter, bringing its total to 450 million, the
company said. It expects to post 194 million paid subscribers in the quarter,
implying an increase of 6 million. The company anticipates its revenue to increase
to 3 billion euros.
"We continue to monitor the global macro outlook, but
to date, have seen no real impact on our user or subscriber outlook," CFO
Paul Vogel said on the call. "Specifically, we expect to see another
quarter of accelerating MAU net adds and expect subscriber net additions
similar to Q3 of last year.