Spotify Q2 2019 Earnings | Mature Markets Still the Engine Room of Growth

The 20,000 Foot View: Q2 2019 was another solid quarter for Spotify, X subscribers it typically does in promotional quarters. Core metrics such as churn and average revenue per user (ARPU) all moved in the right direction, but Spotify remains out of contract with two major label partners and needs emerging markets’ subscriber growth to start picking up the slack before mature western markets slow.

Key Findings

  • Spotify hit X subscribers in Q2 2019, X on Q1 2018 and X from one year earlier – X increase as Q1 2019
  • Ad-supported monthly average users (MAUs) were X from Q2 2018
  • Spotify’s paid conversion rate X from Q1 2019 to reach X%
  • Latin America and ‘Rest of World’ contributed X% of all subscriber growth in Q2 2019. These markets will need to X moving forward
  • Ad-supported MAUs X slightly from Q1 2019 in North America and Latin America but X in Rest of World to reach X million
  • Premium ARPU was up slightly to €X while ad-supported ARPU reached €X
  • While X will be key to subscriber growth, they will dent ARPU and premium revenue growth
  • X consolidated its position as a majority premium market for Spotify in Q2 2019 with a X% paid conversion rate, up from X% in Q1 2019
  • Premium revenue grew X% to reach €X million in Q2 2019, with gross margin recovering X one year earlier
  • Net premium revenue growth of €X million was just €X million more than in Q2 2018
  • Ad-supported revenue was X% on Q1 2019 to reach €X million in Q2 2019
  • Podcasts X delivering meaningful revenue
  • Spotify churn X% in Q2 2019, X having been at X% one year previously
  • Artists representing the majority of streams rose from X in 2016 to over X in Q2 2019

Companies and brands mentioned in this report: Anchor, Gimlet, Parcast, Spotify, Warner Chappell

Charts: 4
Pages: 13
Words: 1,910

Includes Synopsis, PDF, Slides and Dataset