- Spotify hit 600 million users, adding 28 million in Q4 as emerging markets now.
- The 17% staff cut helped reduce losses.
- Robust engagement and personalization initiatives have boosted subs 16% and revenues to $3.97 billion.
Spotify surpassed 600 million monthly active users after adding 28 million in Q4 2022 – its second-largest quarterly jump ever. The 15% annual increase in paying subscribers to 236 million also drove the streaming service’s revenues up 16% to $3.97 billion for the period.
Emerging markets growing a lot
Propelling the robust user addition was continued penetration in priority growth areas like Latin America and emerging markets, which now represent 35% of Spotify’s total subscriber base.
The company’s full-year Wrapped campaign also pulled in 225 million users.
Still advocating fair-in-app purchases
Despite topping revenue forecasts, Spotify still posted an operating loss of $75 million as expenses remained elevated after a 17% workforce reduction. But the result is an improvement from last year’s larger Q4 deficit.
Apple’s App Store policy changes are pending in the EU, and Spotify continues advocating for fair in-app purchase functionality while pushing subscriptions, personalization, and user engagement.
The streamer now boasts its second highest user tally amidst ongoing initiatives to boost retention and profitability.
