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a spotify Released, on Wednesday (27), the financial results for the second quarter of 2022. The period was marked by a 14% year-on-year increase in the premium plan subscriber base, a record higher than expectations. However, the company incurred a net loss of 125 million euros.
The expansion of users is a brand worth highlighting. According to the company, in the second quarter, the platform registered 433 million monthly active users (MAU). In addition to the 19% growth, the brand exceeded the expected result of 428 million for the period.
“MAU’s STRENGTH” [usuários ativos mensalmente, em português] It was driven by successful marketing campaigns in the rest of the world, a revival in Europe and the strength of Generation Z in Latin America,”
Part of that success revolves around Premium. In total, the platform collected 188 million subscribers, an increase of 14% over the same period last year. The number of users using the platform for free, with ads, reached 256 million, a growth of 22% compared to the second quarter of 2021.
According to the company, plans with more than one user continued to show strength in this period.
Revenue rises, but Spotify makes no profit in the quarter
This expansion boosted revenue. Spotify made money mainly from Premium subscribers: €2.5 billion, up 22% year-over-year. Free plan users, in turn, took 360 million euros for the company’s money, which is a 31% higher result than in 2021.
Total revenue totaled 2.8 billion euros. The result was 23% higher than the same period last year, when the company raised 2.3 billion euros. However, this did not prevent the company from achieving a net loss of 125 million euros.
The sign ends the positive cycle of the previous period. To give you an idea, in the first quarter of 2022, Spotify had a net profit of 131 million euros. In addition, it is significantly higher than the results of the second quarter of 2021, when the loss was 20 million euros.
The platform expects more users in the third quarter
The report also revealed expectations for the next session. In the third quarter of 2022, Spotify expects to reach 450 million monthly active users. The number of subscribers of the premium plan is expected to rise to 194 million, while the estimated revenue is 3 billion euros.
However, the company has not said when Spotify HiFi will be launched, as indicated the edge. And the remark makes sense, because it’s been over a year since the role was announced and there isn’t even a premiere date yet.
Meanwhile, Apple Music, Deezer, and Tidal are already offering the option to listen to more high-quality music to their users.
Informative: Spotify (newsroom)