Spotify reaches 236 mn premium subscribers, revenue up 16%

New Delhi, Feb 6: Swedish music streaming platform Spotify on Tuesday said it now has 236 million premium subscribers, a 4 per cent increase over the last quarter.

Monthly active users grew 23 per cent (on-year) to 602 million and one million ahead of guidance, the company said while disclosing its Q4 2023 numbers.

Spotify’s user base and premium subscribers grew by 113 and 31 million, respectively, for 2023.

Total revenue grew 16 per cent (on-year) to 3.7 billion euros and operating loss was 75 million euros for the quarter.

“Excluding one-time charges, we generated 68 million euros in adjusted operating profit, which is more than double the third quarter as the business continues momentum towards sustainable growth and profitability,” the company said in a statement.

With revenue and profitability trends both inflecting favorably heading into 2024, “we view the business as well positioned to deliver improving growth and profitability,” it added.

Last December, Spotify announced to slash about 17 per cent of its workforce across the company as it looks to become "both productive and efficient".

Spotify founder and CEO Daniel Ek said in a note to staff that right-sizing the workforce is critical for the company to face the "challenges ahead".

He cited slowing economic growth and increased capital costs as reasons for the layoffs, claiming that the company used lower-cost capital in 2020 and 2021 to invest heavily in the business.