Spotify Earnings Q3 2019 Up on Most Counts
Report by
Mark Mulligan
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The 20,000 Foot View: 2019 was a quarter of mixed fortunes for Spotify, with its subscriber base showing good, consistent growth, podcasts making a solid early showing, emerging markets demonstrating promise but ad revenue falling short.
Key Insights
- Spotify hit subscribers in 2019, up five on 2019 and in line expected growth
- Spotify added monthly average users (MAUs) in but grew its free user significantly faster than paid, adding ad-supported MAUs
- Spotify added million subscribers in North America, more than it did the year, reflecting the continued strength the US streaming market
- Rest of is growing faster in free than paid: Spotify added million of World ad-supported MAUs compared million subscribers, with the gap compared to 2018
- The paid-to-free was down in both of predominately emerging market regions, due free user growth creating a subscriber acquisition funnel
- North America Europe added two million subscribers reaching million and million respectively
- Premium revenue year-on-year (YoY) to reach million 2019 while gross margin was from to 2019 was a weak quarter for ad-supported revenue, up just million on 2019, representing of all revenue, compared to one year earlier million Spotify users streamed podcasts on-platform in 2019, generating million in revenue
- Spotify churn slightly from in 2019 to it the second successive quarter Spotify has recorded its lowest churn rate
- MIDiA forecasts to hit million subscribers in
Companies and brands mentioned in this report: Spotify