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Spotify Earnings Q3 2019 Up on Most Counts

Report by Mark Mulligan
Cover image for Spotify Earnings Q3 2019
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The 20,000 Foot XXX 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 XXX million subscribers in XXX 2019, up five million on XXX 2019 and in line with expected growth
  • Spotify added XXX million monthly average users (MAUs) in XXX 2019 but grew its free user base significantly faster than paid, adding XXX million ad-supported MAUs
  • Spotify added two million subscribers in North America, one more than it did the prior year, reflecting the continued strength of the US streaming market
  • Rest of World is growing faster in free users than paid: Spotify added XXX million Rest of World ad-supported MAUs compared to XXX million subscribers, with the gap widening compared to XXX 2018
  • The paid-to-free ratio was down in both of Spotify’s predominately emerging market regions, due to free user growth creating a wider subscriber acquisition funnel
  • North America and Europe added two million subscribers each, reaching XXX million and XXX million respectively
  • Premium revenue grew XXX year-on-year (YoY) to reach XXX million in XXX 2019 while gross margin was down from XXX to XXX 2019 was a weak quarter for ad-supported revenue, up just XXX million on XXX 2019, representing XXX of all revenue, compared to XXX one year XXX million Spotify users streamed podcasts on-platform in XXX 2019, generating XXX million in revenue
  • Spotify churn fell slightly from XXX in XXX 2019 to XXX making it the second successive quarter that Spotify has recorded its lowest to-date churn rate
  • MIDiA forecasts Spotify to hit XXX million subscribers in XXX 2019

Companies and brands mentioned in this report:  Spotify

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