Moneycontrol PRO
you are here: HomeNewsBusiness

Spotify reaches 299 million daily active users and 138 million paid subscribers

Growth in India and North America exceeded expectations.

July 30, 2020 / 05:34 PM IST

Spotify recently reported its second quarter earnings and the platform seems to have rebounded from the coronavirus-related weakness. The Swedish music streaming platform increased its monthly active users to 299 million in Q2 2020, a 29 percent year-on-year and a 5 percent increase over the preceding quarter.

Spotify also increased the number of paid subscribers, which reached 138 million in total. The management suggested that music streaming demand had rebounded from the low numbers due to the coronavirus pandemic. Premium subscribers rose 27 percent YoY. The only area where the company saw a decline was in free cash flow, which was primarily down due to "continuing uncertainty surrounding the COVID-19 pandemic.”

QuarterQ2 2020Q1 2020Q2 2019
Total monthly active users (MAU)299 million286 million232 million
Premium subscribers138 million130 million108 million
Ad supported MAUs170 million163 million129 million

Growth in India and North America exceeded expectations, with an increase in the number of users. Spotify noted that “strong performance from marketing campaigns in the region” was a key reason for outperforming expectations in India. The management also revealed global consumption hours had recovered to pre-COVID levels as of June 30.

Evercore ISI analyst Kevin Rippey told Reuters, “User trends remain strong on a headline number basis, but mix shift to lower price tiers and geographies continues to weigh on subscription average revenue per user, leaving subscription revenues below where some investors had hoped.” Additionally, Spotify recorded 33 percent growth in Latin America and 58 percent in the Rest of the World.

Moneycontrol News
first published: Jul 30, 2020 05:34 pm