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Spotify continues to see a growing use of its streaming music services at will (and more and more podcast), even if it has not met the expectations of badysts for sales of its results.
In the fourth quarter, the results announced today alongside the blockbuster that it was buying Gimlet and Anchor to strengthen its podcast offer, announced that total active users had reached 207 million, an increase of nearly 30 % compared to a year ago. first positive net profit – of € 94 million – and net profit – of € 442 million, making this Spotify the first quarter of its history to show an operating result, a net result and a positive cash flow.
But these high figures have also been mitigated by one of the big drawbacks of the public limited company: do not meet the expectations of badysts regarding its financial statements.
The company generated sales of € 1,495 million, up 30% compared to the same quarter of the previous year. That's $ 1,702 million, less than the $ 1.71 billion that badysts expect.
In terms of earnings per share, however, the company's strong net earnings have allowed it to significantly exceed the estimates. Spotify reported diluted EPS of $ 0.36, while badysts expected a loss per share of $ 0.22.
Spotify is still a relatively young company and, in the face of competition from companies like Apple, Amazon and Google, it is still showing very strong growth even if some objectives have not been achieved.
With a surge in more Middle Eastern countries, Spotify is now active in 78 countries and has announced plans to add more this year. Through this footprint, listening time increases, both at the level of free layers that funded by advertising, with 15 billion hours of content consumed during the quarter.
While the company continues to develop its free tier with more adtech in both its music and podcast offerings, its Premium level also continues to grow and still accounts for the bulk of the company's revenue.
The number of subscribers to its paid services now stands at 96 million, an increase of 36%. Spotify attributes some of the strong performance to promotions with Google Home – its very first hardware kit – and the holiday rush. The company is increasingly diversifying its compensation levels, now offering student and family plans in addition to individual subscriptions.
Paid subscriber revenue accounts for almost all of Spotify's revenue. In the fourth quarter, it amounted to 1,320 million euros, or 88% of the total, and in parallel with the growth of the turnover, it also progressed by 30% compared with the previous year. 39, last year. The average revenue per user was € 4.89, said Spotify.
Advertising-financed revenue generated only € 175 million of its total revenue.
The B2B sales of the company are also developed seriously. Spotify for Artists, which measures track playback and other commercial aspects of an artist's profile on Spotify, is now used by 300,000 creators, the company said.
Now that there is also an additional Spotify for Podcasters service, since Spotify now boosts its spoken content with Gimlet and Anchor acquisitions, it is also possible that usage will start to increase. Currently, Spotify indicates that 10,000 podcasters use its badytics tool for the audience and other information, which is a relatively small number. The jury is still unaware and the other badysis efforts pushed by Spotify.
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