SPOTIFY EXCEEDED 600M MONTHLY AVERAGE USERS IN Q4 2023

Spotify hit 602m monthly average users (MAU) in the fourth quarter of 2023, with paying subscribers growing 15% to 236m 10/1-12/31.

MAU rose 23% over 2022, a net addition of 28m that represented the second-biggest such Q4 increase in the streamery’s history. The company added 113m MAU in 2023, the biggest annual addition in its history.

Spotify is predicting MAU growth of 16m in Q1 of this year, with premium subscribers reaching 239m.

Total revenue in the quarter was up 16% to €3.7b (close to $4b). Premium revenue grew 21% year over year in constant currency to €3.17b. Ad-supported revenue grew 17% to €501m. 2023 revenue was reported as $14.34b.

Excluding €143m in charges associated with layoffs during the quarter, Spotify generated €68m in adjusted operating income, more than double that of Q3 2023.

Gross margin, currently 26.7%, is expected to dip slightly.

Spotify's stock rose to nearly $188m at year’s end after starting 2023 at around $80 a share.

“With revenue and profitability trends both inflecting favorably heading into 2024, we view the business as well positioned to deliver improving growth and profitability as we progress toward delivering against our Investor Day goals,” read a statement.

On a call with analysts, CEO Daniel Ek answered a question about the TikTok/UMG situation by saying, “We feel really good about our relationship with our music partners—it’s the best it’s been. We feel great about opportunities we have to enhance the partnerships.”