News

Spotify Hits 100M Paid And 217M Overall Subscribers

Spotify is in a net loss of $158.6 million and negative EPS of $0.88

Spotify Hits 217 Millions subscribers

Spotify, the world’s largest hi-fi music streaming service, has recently revealed its Q1 figures. Spotify has reported 100 million paid subscriptions, up by 32% as compared to last year, and a total of 217 million subscribers across 79 markets globally. Since its advent in India in February, Spotify has gained 2 million subscribers within a month. 

Even with this much growth in subscribers, its financial picture still doesn’t look good. Though its $1.68 billion sales revenue exceeded analysts' estimates of $1.64 billion, its earnings per share seem to have taken a hit.

The biggest music streaming service still remains unprofitable, with a negative EPS of $0.88, way below the analysts’ expectations of only negative EPS of $0.39.

Spotify’s net loss is down to $158.6 million from $188.6 million, in Q1 2018. It also updated that its investment in Tencent Music is now $2.6 billion, up by $763 million in the quarter. 

It has also revealed that it has invested $400 million in the acquisition of three podcasts during this period, $56 million for Parcast, and $344 million for Gimlet Media and Anchor FM both. The combined purchase is stated to be roughly equivalent to Spotify’s cumulative cash flow during the last three quarters.

Spotify’s revenue from paid subscriptions, $1547 million, still makes the most of its total revenue and is much higher than its advertising revenue, $141 million. The revenue from subscriptions is also growing at a higher rate of 34% than its advertising business, which is growing at 24%.   

That’s why Spotify’s partnerships, which helps in bringing more paid subscribers, continues to be the most significant part of Spotify’s business model.

According to them, the promotions with Samsung and Google Home Mini, and the reduced bundle price of $9.99, sold with Hulu, had a great impact on the strong revenue performance.

Spotify’s Q2 expectations:

  • 222 - 228 million MAUs, up by 23 - 27% year-on-year,
  • 107 - 110 million premium subscribers, up by 29 - 34% year-on-year,
  • $1.7 - $1.9 billion revenue, up by 18 - 35% year-on-year,
  • Gross margin up by 23.5 - 25.5% year-on-year,
  • Operating loss of $16.7 - $106.1 million

Spotify’s full-year expectations:

  • 245 - 265 million MAU, up by 18 - 28% year-on-year,
  • 117 - 127 million premium subscribers, up by 21 - 32% year-on-year,
  • $7.1 - $7.6 billion revenue, up by 21 - 29% year-on-year,
  • Gross margin up by 22 - 25% year-on-year,
  • Operating loss of $201 - $380 million

Spotify’s shares are also up by 5% in pre-market trading. The growth in the next quarter and the rest of the upcoming year is expected to continue at the same rate and might help to even out its losses ultimately, though not in the next year only. To know more about Spotify in-depth you can read out our blog on "Spotify Statistics"

If you are interested in reading more about Spotify, you can check out our detailed review of Spotify App.  

Tanya <span>Editor In Chief</span>
Written By
Tanya Editor In Chief

She is a content marketer and has more than five years of experience in IoT, blockchain, Web, and mobile development. In all these years, she closely followed the app development, and now she writes about the existing and the upcoming mobile app technologies. Her essence is more like a ballet dancer.

News

Password Manager App, Dashlane, Bags $110M

4 min read  

Gone are the days when just by using a combination of numbers and special characters, your password becomes secure. And for God’s sake, stop using ‘password’ as your password. Nowadays, with the rise in data breaches, the popularity of password managers, like Dashlane, has increase

News

Facebook Is Hiring For In-House Chip Development

4 min read  

After Apple, its Facebook that will be developing its own chips for the devices says, company job listings. The social media giant is hiring the employees for the chip development and posted the hiring details on its corporate website. Facebook will be the latest one to adopt the in-house chip makin

News

Password Management App Dashlane Raises $30M, Spotify Former CMO Joins Board

4 min read  

A password manager and identity management solution, Dashlane, raises $30 million in a new round of funding. There is also a new addition to its board, Seth Farbman, a former CMO of Gap and Spotify.The debt financing was led by Hercules Capital with participation from previous investments from F

News

Apple iOS 11.1.1 turns into a Bigger Bug

4 min read  

The autocorrect bug in iOS 11 has made Apple release a new update to the platform with a fix to solve the issue. But it seems the iOS 11.1.1 is causing the way bigger problem than the autocorrect bug for the iOS 11 users. The update fixes the autocorrect bug but brings app crash issue and problemati

MAD Originals
MAD Originals

Cut to the chase content that’s credible, insightful & actionable.

Get the latest mashup of the App Industry Exclusively Inboxed

  • PRODUCTS
  • SERVICES
  • BOTH