Spotify deliver strong Q3 results, reaching 226m subscribers

Spotify has delivered a strong performance in third quarter of 2023, with subscriber growth up by 16% reaching 226 million subscribers for its premium tier. 

The music streaming service reported the results represented its second largest Q3 net addition performance in history, gaining six million new premium subscribers, with two million sign ups ahead of guidance. Monthly Active Users increased by 26% to 574 million, with 2 million additions ahead of expectations.

Total Revenue grew by 11% year on year to €3.4 billion, exceeding guidance, while gross margin finished above guidance at 26.4% and operating income reached €32 million for the quarter.

Ad-Supported revenue grew 16% year on year, reflecting double-digit year on year growth across all regions. While music advertising revenue rose by nearly 20% year on year, driven by growth in impressions sold and stable pricing.

Spotify has recently introduced personalisation features on the app, including AI voice translations across its podcasts, Jam – a personalised way to listen with friends, and daylist – a hyper-personalised playlist that updates multiple times daily. It also launched a new Sponsored Recommendation, Showcase, that lets creators promote new and catalog music releases anytime at the top of Spotify’s Home, as well as new features for podcasters to get discovered and grow their audiences including customisations, impression analytics and automated ads.