Spotify just released its fourth-quarter earnings and announced that it now has 205 million premium subscribers, 10 million more than the previous quarter. This remarkable increase in numbers translated into €3.17 billion ($3.43 billion) in revenue, demonstrating how popular their services have become with nearly 500 million monthly active users across both ad-supported and paid subscription tiers!
See also: Spotify launches Playlist in a Bottle feature
See also: Why are Spotify and 7 other companies launching an attack on Apple?
Although the company reported a net loss of 270 million euros ($292 million) compared to 39 million euros the previous year, CEO Daniel Ek attributed the shortfall to over-ambitious moves. For the full year 2022, the business posted a significant net loss of 430 million euros ($466 million) on revenue of 11.7 billion euros ($12.7 billion).
Spotify claimed its losses were the result of “increased personnel costs, primarily from increased headcount and higher advertising spend,” as well as currency fluctuations. That helps explain the company’s move last week, when it announced it would lay off 6% of employees as part of a corporate restructuring.
See also: Spotify: Is it laying off staff to reduce costs?
CFO Paul Vogel noted that Spotify aims to be more fiscally prudent in 2023, with marketing activities being part of this new overall strategy. This will mean they will have greater control over expenseswhile remaining productive. Spotify expects to reach 500 million monthly active users and 207 million premium subscribers by next quarter.
Information source: engadget.com
