Spotify added 7m premium subscribers in Q3 – and has added 15m in 2022 up to now

Doomsday analysts carry on concluding that leisure subscriptions are in for a tough journey in 2022 because of macroeconomic pressures. Spotify retains on defying them.

In Q3 2022 (the three months to finish of September), Spotify added one other 7 million internet Premium subscribers to its person base, taking its whole world paying subs viewers to 195 million.

That determine was revealed in the present day (October 25) by way of the announcement of Spotify’s official Q3 outcomes.

SPOT’s 195 million subs base is a full 15 million subscribers forward of the place Spotify was on the shut of 2021 (180m).

The 7 million progress in Q3 subs was forward of Spotify’s personal steering of +6 million.

Additionally forward of SPOT’s expectations: the platform’s whole Month-to-month Lively Customers (MAUs), which mix paying customers and ad-supported customers.

Spotify’s MAUs on the shut of Q3 hit 456 million – up 23 million on the prior quarter, and comfortably forward of the 450 million the corporate urged in its personal earlier steering.

Spotify famous to shareholders in the present day that its MAU progress in Q3 was partly because of “higher than anticipated consumption in India on account of a multimedia advertising marketing campaign driving activations and reactivations”.

The agency’s subscriber progress, in the meantime, was partly chalked as much as “outperformance throughout all areas led by Latin America” in addition to “higher than anticipated Q3 promotional marketing campaign outcomes throughout all areas”.

There was barely much less excellent news for document labels on the ARPU entrance: Premium month-to-month world ARPU at Spotify grew 7% YoY to €4.63 – however that was down 1% at fixed foreign money.

When it comes to funds, Spotify generated EUR €3.036 billion (USD $3.06bn) in quarterly revenues in Q3, up +12% YoY at fixed foreign money.

Subscriber/Premium revenues weighed in at €2.651 billion ($2.70bn) in Q3, up +13% YoY at fixed foreign money.

Advert-supported revenues stood at €385 million ($388m) in Q3, however grew considerably slower than subs income.

Advert revenues have been up by simply +3% YoY at fixed foreign money within the quarter – a rise that Spotify mentioned was “led by podcasting”.

Spotify posted a gross revenue of €750 million ($755m) in Q3, reflecting a gross margin of 24.7%.

The agency recorded a €228 million ($230m) working loss within the quarter, because of Working Expense progress of 51% YoY at fixed foreign money.

Spotify mentioned this expense progress mirrored “greater personnel prices primarily because of headcount progress (world advert gross sales workforce growth, platform funding and acquisitions) and better promoting prices for progress initiatives (Rising Markets, Gen Z)”.

Spotify additionally offered some forecasts for This autumn 2022 (the three months to finish of December) in the present day.

The corporate says that it now expects whole paying/Premium subscribers to achieve 202 million by the top of the 12 months, reflecting the addition of 7 million extra internet subs in This autumn.

Spotify additionally expects to achieve 479 million MAUs by the top of 2022, reflecting the addition of an extra 23 million internet MAUs in This autumn (see beneath).

All EUR-USD foreign money conversions on this story have been made on the common quarterly charge acknowledged by the European Central Financial institution.Music Enterprise Worldwide