Reports Music

Spotify Q1 2021 earnings Shifting headwinds

Report by Mark Mulligan
Cover image for Spotify Q1 2021 earnings
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The 20,000 Foot View:  The first quarter of the year is usually a slow one for Spotify, but            2021 saw a few metrics slowing more than in previous years. There were lots of solid performance metrics in Spotify’s results and a slew of new product announcements, but there were also signs of a coming slowdown driven in large part by wider industry headwinds.

Key Insights

  • Spotify added            monthly active users in            2021            reach            million, compared to the            it added one quarter earlier.            was higher than the            million                       million added in            and            2020           
  • Spotify finished            with            million subscribers. It added            subscribers in            2021 (three million)            it did in            2020 (six            and was the first year            2015 it added less than            million in the first quarter
  • European subscribers            up, while ad-supported users were            North America saw continued solid            growth as did ‘rest of            however, Latin American subscribers were            despite Mexico delivering strong growth
  • Revenues and            maintained good trajectories, but revenue            was below market benchmarks. Total            was up            year-on-year, while major            streaming revenue was up           
  • Ad revenue            up            year-on-year, in line with            but below YouTube            Quarter-on-quarter ad            was down by            compared to            of            for YouTube and            for           
  • The share            monthly active users that engaged            podcast content remained at around                       million podcast monthly active users,            from            million quarter-on-quarter. Consumption and            growth came from better engagement            established users

Companies and brands mentioned in this report: Amazon Music, Alphabet, Betty Labs, Deezer, Facebook, Peloton, Spotify, TikTok, YouTube