Spotify now has more than 83 million paying subscribers and more than 180 monthly active users. It’s still losing money, though. The findings were published in the music streaming company’s second-ever quarterly earnings report.
Overall, revenues are going in the right direction: an 11 percent increase from last quarter in subscriber revenues to €1.15 billion and ad revenues going up 21 percent from the winter to €123 million. However, the Swedish firm posted an operating loss €90 million — about two-thirds of the loss can be accounted to fees for the New York Stock Exchange listing and employee stock options being executed before the listing.
The firm has been focused on the spread of its platform rather than on profits. It has expanded a partnership with Hulu to provide a subsidized combined subscription offering for music and video streaming.
It has also been working on retainment, cutting churn in the United States to below 4 percent. Media outlets have reported that competitor Apple Music has been outpacing Spotify in American subscriber growth for the past several months and, while far from taking over globally anytime soon with about a 60 percent larger pay base, would prove a robust challenger for first place in the states.
Spotify expects to gain between 2 million and 5 million subscribers in the current quarter with goals of about 200 million by the end of the year. It still projects losses in the tens of millions of euros for the rest of the year.