Spotify Q3 2021 earnings Premium matures as advertising accelerates
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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