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Spotify posts quarterly profit, reaches 22.60 crore paid subscribers


On Tuesday, Spotify announced a quarterly profit, boosted by price increases in its streaming services and an increase in members across all regions. In addition, the business expects its monthly listeners to exceed 601 million in the current quarter. 

Spotify reported an operating income of 32 million euros in the third quarter, its first quarterly profit since 2021. This was due mostly to a larger profit margin and lower marketing and labor costs. 

The Chief Financial Officer, Paul Vogel, voiced confidence, saying, ‘We foresee sustained improvement in our operational income going forward.’ The corporation anticipates 37 million euros in operating income for the current quarter.  

Despite previously investing over a billion euros in building its podcast business, Spotify has worked hard to keep costs under control, including a 6% cut in its personnel earlier this year and a hike in premium plan fees in July. ‘We remain committed to boosting efficiency, which for us includes not simply cost-cutting, but also optimizing the value of each investment,’ said CEO Daniel Ek. 

Spotify’s gross margin climbed to 26.4% from July to September, up 166 basis points from the previous year. In an interview, Paul Vogel stated, “We expect further margin expansion.” 


In the third quarter, the company’s monthly active user base increased by 26% to 574 million, above both its own predictions and analysts’ expectations of 565.7 million. Premium members, which account for the majority of the company’s revenue, grew by 16% to 226 million, beating LSEG IBES projections of 223.7 million. 

Revenue increased by 11% to 3.36 billion euros, exceeding estimates of 3.33 billion euros. 

Spotify’s fourth-quarter monthly user prediction puts the company on track to reach 1 billion users and $100 billion in yearly revenue by 2030. Analysts had predicted 591.2 million listeners at the outset. 

Furthermore, the business expects premium customers to surpass 235 million in the fourth quarter of the year, with revenue reaching 3.7 billion euros. Analysts predicted 232.4 million premium subscribers and 3.69 billion euros in income.