Reports Music

Spotify Q3 2021 earnings Premium matures as advertising accelerates

Report by Mark Mulligan
Cover image for Spotify Q3 2021 earnings
Synopsis PDF Excel Excel

Get full access to this report and assets

Already a MIDiA client? Login here to view this report.

New to MIDiA? Get in touch with our client success specialists to purchase this report and gain a competitive edge today.

The 20,000 foot view:  Spotify is in a transition phase. Monthly active user (MAU) growth bounced back, but user growth is in a mid-term slowdown phase while the business begins its transition to emerging markets and ad-based audio – with the latter showing more signs of movement than the former.

Key Insights

  • Short-term user            recovered: Spotify added            million MAUs                       2021 to reach            million MAUs,            to the addition of nine            in            2021
  • Spotify continued            grow subscribers steadily, adding (net)            million for the second quarter            a row to reach            million            by end            2021
  • Quarter-on-quarter (QoQ)            growth was the same for            regions in            2021 as it            in            2021 
  • Europe grew                       million subscribers) and North America            on            million subscribers, while Rest            World growth was small again           
  • Rest of            ad-supported user growth was strong            and the region overtook Europe            the largest ad-supported MAU region            ad-supported MAUs)
  • User growth            in a mid-term slowdown phase.                       2020 and            2021, Spotify added            subscribers (down three million from            year earlier) and            million ad-supported            (down            million)
  • Spotify is            to work harder to achieve            slowing growth. Sales and marketing            per acquired user increased in            2020 and 2021
  • In contrast            its user growth story, Spotify’s            narrative continues to improve. Total            were up by            YoY in            to reach            billion, compared to            growth of           
  • On a            (YoY) basis, ad revenue grew                       to reach            million compared to            more modest            premium revenue growth
  • Ad revenue                       of all Spotify revenue in            up from            one year earlier 

Companies and brands mentioned in this report: Spotify