Spotify’s operating expenses totaled €677 million ($759m) in Q1, an increase of 27% YoY. These plus points for Spotify’s margin, it said, were “offset by increased non-music content spend investments in music product enhancements”. away from music) as well as “growing marketplace activity”. The firm said this “reflected a favorable revenue mix shift towards podcasts” (i.e. Spotify’s quarterly gross margin finished at 25.2% in Q1, slightly ahead of guidance. Premium Revenue grew 18% YoY (at constant currency) to €2.379 billion ($2.67bn), while ad-supported revenue grew by 22% YoY (at constant currency) to €282 million ($316m). Looking at Spotify’s financial performance in Q1 2022, the firm posted revenue of €2.661 billion ($2.98bn), up 19% year-on-year on a constant currency basis.Īgain, this was ahead of Spotify’s previously-issued guidance. Spotify’s monthly ARPU figure hit €4.38 (USD $4.91) in Q1 2022 – still below 5 US dollars per month, but a YoY improvement that Spotify partly pinned on “our price increases in 2021 and favorable product mix shift”. Of particular interest for record labels and music publishers: Spotify reports that its ARPU (Average Revenue per Premium User) grew 6% year-on-year in Q1, and by 3% YoY on a constant currency basis. “MAU growth was particularly strong in our Gen Z audience, fueled by successful product feature launches such as our Lyrics experience, as well as marketing and content initiatives.”

Said Spotify of its MAU growth: “The business benefited from outperformance in Latin America and Rest of World, led by Indonesia, Brazil, and Mexico. Still, even without this 3 million increase, the remaining 13 million jump on Q4 2021 was 1 million ahead of Spotify’s previously-issued guidance. As a result, we believe certain affected users created new accounts to log back in, resulting in approximately 3 million additional MAUs in the quarter.” The firm explained: “During March, there was a brief service outage that caused users to be involuntarily logged out of Spotify. That 16 million jump included the addition of 3 million MAUs due to what Spotify called a “one-time benefit”. Back to Q1 2022: Spotify’s global Monthly Active Users (MAUs) hit 422 million at the close of the quarter, up by 16 million quarter-on-quarter.

Why is spotify down march 2022