Spotify has announced their second quarter 2024 earnings. Led by healthy subscriber gains, improved monetization, and record profitability, Spotify added 7 million subscribers in the second quarter, roughly a million more than forecasted, and that boosted revenue, profit margins and the company’s stock price, which surged 12% on Tuesday morning.
Spotify reported $4.15 billion in total revenue in the second quarter, a 20% increase over the year-ago period, and a record-high gross margin of 29.2% due to favorable music content costs, executives said. Spotify’s operating income was up for the second straight quarter to $289.6 million on a higher gross margin and lower marketing, personnel and other costs.
“It’s an exciting time at Spotify. We keep on innovating and showing that we aren’t just a great product, but increasingly also a great business,” said CEO Daniel Ek. “We are doing so on a timeline that has exceeded even our own expectations. This all bodes very well for the future.”
Highlights from Q2: GRAB THE FULL REPORT HERE
• Total revenue of 3.8 billion euros reflected revenue from premium subscribers growing by 21% and ad-supported revenue growing 13%.
• Gross margin of 29.2% beat the company’s growth forecast due to improved music and podcast profitability, the company said.
• Operating income also beat guidance at 266 million euros due to lower personnel and marketing costs.
• Total monthly active users (MAUs) were 626 million in the second quarter, up 14% from a year ago.
• Premium subscribers totaled 246 million and ad-supported MAUs totaled 393 million, up 12% and 15% from a year ago respectively.
• Premium average revenue per user (ARPU) rose 10% from last year.
