Spotify Q3 2019 Results and Highlights

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Spotify announced its Q3 2019 results today, October 28. 

Captured below are few highlights from the quarterly results for your quick reference –

  • Monthly Active Users (MAUs)

    • Total MAUs grew 30% Y/Y to 248 million, outperforming the high end of the guidance range
    • Developing regions continue to be a significant driver of this outperformance – growth in Latin America accelerated sequentially for the 2nd consecutive quarter as retention among newer users continues to improve
    • Southeast Asia remains Spotify’s fastest-growing region (excluding India), and Y/Y growth in Q3 accelerated 1400 bps vs. Q3 2018
    • Notably, India outperformed the forecast by 30% this quarter, owing to the momentum driven by a number of factors, including the launch of Spotify’s first broad-based marketing campaign, “Sunte Ja”, since launch in February
  • Premium Subscribers
    • 113 million Premium Subscribers globally, up 31% Y/Y, exceeding expectations
    • Growth was led by strong performance in both, Family Plan and Student Plan
  • Revenue
    • Total revenue was €1,731 million in Q3, representing growth of 28% Y/Y
    • Premium revenue was €1,561 million of the total and grew 29% Y/Y, outperforming the forecast
    • Ad-Supported revenue was €170 million, up 20% Y/Y, but weaker than the forecast
  • Podcasts
    • Spotify’s podcast audience grew by 39% Q/Q in Q3, with over 500,000 titles available on the platform
  • Two-Sided Marketplace

Recent highlights of positive developments with Spotify’s marketplace strategy include:

    • Spotify for Artists– Valuable analytics, identity management, and promotion tools with more than 465,000 monthly active artists, up 365% from the 100,000 announced at Investor Day. These monthly active artists account for ~80% of the streams on Spotify. Key recent additions to the feature suite is Canvas – a tool that enables artist teams to add looping visuals to their tracks. Many artists have seen substantial uplift in their streams by using this tool.
    • Sponsored Recommendations– Available to select major and independent label partners as part of our recently announced paid beta in the U.S., this is Spotify’s first cost per click ad product which leverages our listener graph of music tastes to promote new releases to free and paying users.
    • SoundBetter– In September, we announced the acquisition of SoundBetter, a music production marketplace for artists, producers, and musicians with 180,000 registered users.

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