Within the third quarter of 2022, Spotify income improved to three.04 billion euros ($2.98 billion on the Sept. 30 trade charge), marking a rise of 12% at fixed foreign money and 21.4% as reported, the corporate reported Tuesday (Oct. 25). Subscription income grew 13% (22% as reported) to 2.5 billion euros ($2.46 billion) whereas subscribers improved 13.4% to 195 million — 1 million forward of steering. Led by podcasting, the corporate’s ad-supported income grew simply 3% at fixed foreign money (19% as reported) to 385 million euros ($378 million).
Spotify’s gross margin of 24.7% — which is 50 foundation factors beneath steering — was barely higher than the 24.6% registered within the second quarter, but it surely was nonetheless two proportion factors decrease than 26.7% within the prior-year interval. The corporate attributed the decline to its spending on non-music content material and product enhancements, elevated publishing charges and an adjustment to prior-period accruals. These adverse results served to offset a positive income shift to podcasting and continued development in Market, Spotify’s hub for artist providers.
Spotify shares fell 6.7% to $90.54 in after-hours buying and selling.
Monetary metrics
- Income: 3.04 billion euros ($2.98 billion), +21.4% y/y, +13% at fixed foreign money
- Gross margin proportion: 24.7%, down from 26.7% in Q3 2021
- Working loss: 228 million euros ($223.8 million), down from 75 million euros working earnings in Q3 2021
- Common income per person: 4.63 euros ($4.55)
Listener metrics
- Subscribers: 195 million, +13.4% y/y
- Advert-supported month-to-month lively customers: 273 million, +24.1% y/y
- Month-to-month lively customers: 456 million, +19.7% y/y
This can be a growing story.
