Spotify Monthly Users Reach 602 Million

Spotify’s price increase, greater cost discipline and growing ad business helped the audio-streaming giant narrow losses in the final quarter of 2023.

The Wall Street Journal reports the company has been working toward becoming consistently profitable, including by right-sizing its investments in podcasting, raising prices and cutting its workforce. It laid off 17% of its staff, or about 1,500 employees, in December.

Spotify narrowed its loss to 70 million euros, equivalent to about $75 million, in the final quarter, from €270 million in the prior-year period. Revenue grew 16% to €3.67 billion, in line with its guidance, helped by a price increase in the second half of 2023 and a growing ad business. 

Subscription revenue, the largest contributor to its top line, increased 17% to €3.17 billion. Revenue from advertising climbed 12% to €501 million—an all-time high, the company said, thanks to double-digit growth across both music and podcasts.

Spotify last week said it renewed its licensing agreement with star podcaster Joe Rogan, a deal The Wall Street Journal reported is worth up to $250 million. Under the new deal, Spotify will sell ads for and distribute “The Joe Rogan Experience” across several podcast platforms, including in a video format on YouTube, instead of requiring exclusivity. 

Subscriber growth at Spotify remained strong in the final quarter of the year. Spotify’s pool of paid subscribers—its most lucrative type of customer—rose 15% to 236 million, ahead of expectations. Paid subscriber growth was strong in all regions, particularly in Latin America and outside of Europe and North America.

Spotify ended the year with 602 million monthly active users, a 23% rise from a year earlier. The company said it expects monthly active users to grow to 618 million in the first quarter and paid subscribers to grow to 239 million.