Like a myriad other companies this week, Spotify has revealed its latest earnings report for Q3 2020. The company also released an accompanying infographic, the most important for which, we’ve included at the bottom of this post.
Two of the most crucial numbers were its monthly active user and paid subscribers, both of which unsurprisingly grew compared to last year, with the COVID-19 pandemic and lockdown playing pivotal roles in that regard.
To that end the music streaming platform‘s monthly active users has risen to 320 million, which represents a 29 percent year-on-year growth. As for paid subscribers, those rose by 27 percent year-on-year to 144 million.
Another contributing factor to Spotify’s success was launching its service in key regions such as Russia, along with 12 other markets surrounding it. There was a big marketing push in India, which as we know is the second largest mobile market in the world.
While all these numbers are positive for Spotify, it still posted a loss of €101 million, despite recording revenue during the quarter totalling €1.98 billion, which represented a growth of 14 percent.
For reference, during the same quarter last year, Spotify registered profit of €241 million, but the recent quarterly loss can be pegged down to the platform’s plans to grow in other markets, which necessitates sizeable investment.
It therefore means the next few quarters will see similar losses as Spotify continues with its push to increase users and expand availability.
One of the areas it will also continue to push will be podcasts, with 1.9 million available on the service to date. As such, expect to see a lot more focus on that front for the platform in coming months.
[Image – Photo by Sara Kurfeß on Unsplash]