The number of Spotify subscribers exceeds 2.5 billion and operating profits are expected to reach US$1.5 billion in 2024

Spotify is expected to post its first ever full-year profit, with revenue of $1.5 billion.

The company announced its financial performance and user numbers for the third quarter of 2024 (ending September 30) yesterday (November 12).

Top statistic from the music streaming giant: Spotify’s global paid subscriber base grows to just over 2.5 billion (252 million) Paying subscribers for the third season.

That’s it 12% Year-on-year, above 6 Wanwang Subscribers are in 246 million Number of submarines counted by SPOT at the end of the previous season (Q2 2024).

The company added 6 million net new users in the third quarter. 1 million Get ahead of the guidance.

So far in 2024 (as of end-September), Spotify has added +16 million Net paying subscribers. (As of 2023, there are 236 million paid subscribers.)

During the same period in 2023 (i.e. the first 9 calendar months of the year), Spotify added +21 million Pay him for the sub.

When commenting on company performance, Spotify founder and CEO Daniel Ek explain: “We have never been in a better position due to the outstanding execution of our team. I am extremely proud of how we have delivered and the progress we have made.

“We have met the goals we set out to achieve – if not more – and are on track to achieve our long-term goals.”

Daniel Ek

added a: “We have reached the goals we set out to achieve – if not more – and are on track to achieve our long-term goals.

“This relentless pursuit of innovation and commitment to growth allows us to deliver the most valuable user experience in the industry while enhancing the core strengths that make Spotify unique. I’m very excited about our future.

Number of monthly active users

Spotify’s total global monthly active users (MAU) growth 11% Year-on-year arrive 640 mega Q3 2024 and before 2% (14m) Compared with the previous quarter (Q2 2024) at the time of platform statistics 626 million Number of monthly active users.

The company added 14 million monthly active users in the third quarter 1 million more Ahead of guidance, the Rest of the World and Latin America posted the largest gains in the quarter (see below).

premium income

On the financial front, Spotify reported that its Premium user growth translated into Premium revenue 3.516 billion euros Revenue in the third quarter was $3.861 billion “despite greater than expected headwinds from adverse currency trends.”

Spotify’s Premium revenue grows 24% annual increase Calculated at fixed exchange rates (see below).

In terms of geographic user performance, Spotify reported growth in all regions, with Europe (38%) and Latin America (22%) “outperforming.”

Spotify’s premium users in North America grew by 38% (see below).

advertising revenue

Meanwhile, Spotify’s ad revenue has also plummeted €472 million Q3 ($518.4 million), up 7% annual increase Calculated at fixed exchange rates (see below).

Spotify noted in its investor presentation that it saw advertising revenue growth amid a “challenging brand environment” and that its music advertising was driven by “increases in sales of impressions, partially offset by soft pricing.”

Profitability

The company’s gross profit margin is 31.1% In the third season.

Meanwhile, Spotify reported quarterly operating revenue of nearly $500 million – €454 million ($499 million) – in this season.

This brings Spotify’s 2024 year-to-date (i.e. first three quarters) operating profit to 888 million euros (approximately US$975 million), And firmly achieve full-year profitability.

In fact, Spotify currently forecasts fiscal 2024 operating profit of 1.37 billion euros (approximately $1.5 billion).

In terms of guidance for Q4 2024, Spotify forecasts 665 million MAU, increased by approx. 25 million Net new monthly active users this quarter.

The company expects its total number of premium subscribers to reach 260 million During the fourth quarter, there was an increase of approximately 8 million Net new subscribers this quarter.

Spotify expects revenue to be 481 million euros Total revenue for the fourth quarter was 4.1 billion euros.

All EUR/USD conversions are based on the European Central Bank’s average exchange rate for the relevant periodglobal music business