In Spotify’s latest quarterly results, the streaming giant announced that it had ended 2022 with positive user growth and increased ad revenue despite a wider loss overall.
The company said that at the end of the fourth quarter, it had maintained 205 million premium or paying subscribers, an increase from 195 million as of the end of the third quarter. The audio streamer believed this was “aided by promotional intake and household plans.”
Advertising revenue in the fourth quarter also continued to grow for Spotify, rising 14% year-over-year to £396 million (€449 million), reportedly driven by podcasting.
“Ad-supported revenue grew 14 percent year-over-year and accounted for 14 percent of total revenue,” Spotify said. “On a global basis, our music advertising revenue grew mid-single digits year-over-year, reflecting double-digit year-over-year growth in impressions sold, partially offset by softer pricing due to the current macroeconomic environment.
“Podcast revenue grew in the mid-30 percent range year-over-year, reflecting healthy double-digit year-over-year growth in impressions sold and pricing. The Spotify Audience Network saw healthy double-digit quarter-over-quarter growth in participating publishers, shows and advertisers.”
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Spotify also announced that it had 489 million monthly active users at the end of last year, a jump up from 456 million at the end of September. “Net additions of 33 million represented our largest-ever fourth-quarter growth,” the brand added.
According to The Hollywood Reporter, the company’s stock also rose by around 3% in pre-market trading after the quarterly results update.
However, despite total revenue for the final quarter of 2022 rising by 18% to £2.8 billion (€3.17 billion), Spotify’s loss increased from £34 million (€39 million) to £238 million (€270 million) due to rising expenses amid “higher personnel costs, primarily due to headcount growth, and higher advertising costs.”
