Spotify recently concluded a very successful quarter, having reached new heights in terms of its subscription count as well as its ad revenue. The Swedish music and audio platform is the undisputed leader in the music streaming sector, and its forays into new territories have maintained its upward growth trajectory in an impressive manner.
Spotify’s Q2 revenue stood at $2.75 billion, a 23% Y-o-Y increase. This was supported by a 110% increase in ad revenue as well as healthy growth among its premium (paid) subscriber base. The company’s premium customer base grew by 20% Y-o-Y to tally 165 million users, while their monthly active user count has reached over 365 million. While Spotify CEO Daniel Elk stated that these figures fell below their targets for the quarter, the growth is still evident and indicates a very strong run of performance for the platform.
Spotify has held dominance in the music streaming market for a while now, but the company’s expansion into the podcast market has propelled it considerably farther than where they stood in 2018. As of the end of Q2, Spotify holds over 2.9 million podcasts, which have facilitated a Y-o-Y growth of 95% in total listening hours and a whopping 630% in podcast ad revenue.
The company is extremely bullish in its projections for the rest of the year, and expects to reach 400 million monthly active users and 180 million premium subscribers by the end of Q4. From the corporate standpoint, Spotify also expects to return to operating profitability after experiencing losses for the past year due to the Covid-19 pandemic.