This is the first Spotify earnings report with net income
For the first time in its decade-long life, music streaming platform Spotify has recorded operating profit and net profit. It also had the first quarter with positive cash flow.
For the fourth quarter, it had total revenue of €1.495 billion, up 30 percent year-over-year, with turnover of €399 million. After taxes and other expenses, the company recorded €94 million of net income.
Spotify now has 207 million monthly active users, a 29 percent annual gain and beyond its internal guidance. The subscriber count ticked up 36 percent to 96 million, within guidance, though with the stratification of lower revenue products like Family and Student plans, subscriber bills average around €4.18.
That and foreign exchange factors have driven its Q1 income forecast to a loss of up to €120 million and a full-year predicted loss of €360 million. Subscriber count will grow up to 127 million with overall user count perhaps as high as 265 million by year’s end.
The Swedish company looks to grow through acquisitions: it took on Gimlet Media and Anchor today to bulk its podcast operations and wants to spend up to $500 million on further purchases.