Spotify Earnings Q3 2019 Up on Most Counts
Report by
Mark Mulligan
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The 20,000 Foot View: 2019 was a quarter of mixed fortunes for Spotify, with its subscriber base showing good, consistent growth, podcasts making a solid early showing, emerging markets demonstrating promise but ad revenue falling short.
Key Insights
- Spotify hit million subscribers in 2019, up five million on 2019 and in line with expected growth
- Spotify added million monthly average users (MAUs) in 2019 but grew its free user base significantly faster than paid, adding million ad-supported MAUs
- Spotify added two million subscribers in North America, one more than it did the prior year, reflecting the continued strength of the US streaming market
- Rest of World is growing faster in free users than paid: Spotify added million Rest of World ad-supported MAUs compared to million subscribers, with the gap widening compared to 2018
- The paid-to-free ratio was down in both of Spotify’s predominately emerging market regions, due to free user growth creating a wider subscriber acquisition funnel
- North America and Europe added two million subscribers each, reaching million and million respectively
- Premium revenue grew year-on-year (YoY) to reach million in 2019 while gross margin was down from to 2019 was a weak quarter for ad-supported revenue, up just million on 2019, representing of all revenue, compared to one year earlier million Spotify users streamed podcasts on-platform in 2019, generating million in revenue
- Spotify churn fell slightly from in 2019 to making it the second successive quarter that Spotify has recorded its lowest to-date churn rate
- MIDiA forecasts Spotify to hit million subscribers in 2019
Companies and brands mentioned in this report: Spotify