Spotify released its third quarter 2022 financial report this Tuesday (25th). Following the trend of its latest ads, the platform increased its number of subscribers, reaching the mark of 195 million paying users. Despite the 13% growth in relation to the previous quarterthe company posted a lower-than-expected profit margin.
Overall, the numbers between July and September were quite positive for Spotify. In its total number of monthly active users (MAUS), the platform recorded a 20% increase over the same period last year, reaching 456 million users.
In addition to having surpassed the company’s own projection of 450 million users, the number means that, in the last three months alone, 23 million new people began to attend and enjoy the platform’s albums, playlists and podcasts.
Of this group, a small part decided to join the network’s premium plan, registering a 4% increase in new subscribers compared to the previous quarter.
Lower than expected profit margin
Despite the apparent good result, with so many new incoming accounts being registered in the period, Spotify ended the third quarter with a profit margin of 24.7%, a percentage below what they had projected for these three months.
According to the company, the poor result is largely due to an unforeseen slowdown in its advertising and also to some changes that took place in the period in its responsibilities with the rights holders of the platform.
With an operating loss of 228 million euros, the results ended up having a negative impact on Wall Street and caused the company’s shares to close down by more than 6%.
Towards 200 million subscribers
For the fourth quarter of 2022, Spotify predicts that its user growth trend will continue, but, on the other hand, the operating loss will reach even greater values.
According to the platform, its expectations are for it to reach the historic mark of more than 200 million subscribers (more precisely 202 million) and, among active users (MAUS), reach a total of 479 million. This number represents over 23 million new people joining music streaming.
As for its operating income, the loss continues to reach dizzying numbers, with a projection of reaching 300 million euros by the end of the year.
With information: Spotify