Spotify surpasses 600m users

Alex Omenye
Alex Omenye

Spotify, the music streaming giant on Tuesday, announced that it has surpassed 600 million monthly users by the end of 2023.

Furthermore, the company expressed optimism about achieving profitability in the first quarter of 2024.

“Spotify had a very strong quarter, rounding out a great year of truly remarkable growth across the company,” the Chief Executive Officer of Spotify, Daniel Ek, posted on X on Tuesday after the company published its fourth-quarter earnings.

At the conclusion of 2023, the company boasted 602 million monthly active users, marking a 23% increase compared to the previous year. Additionally, paying subscribers, a significant source of the company’s revenue, experienced a 15% surge, reaching 236 million.

In terms of financials, Spotify reported revenues of 13.2 billion euros ($14.2 billion) for the year, compared to 11.7 billion euros in the preceding year. Although the company still recorded an operating loss of 446 million euros in 2023, it marked an improvement over the 659 million euros operating loss in 2022.

Despite its dominance in the online music market, Spotify has not posted a full-year net profit, occasionally reporting quarterly profits. In December, the company announced a workforce reduction of around 17% as a cost-cutting measure, following earlier cuts in January and June 2023.

In July, Spotify, listed on the New York Stock Exchange, increased prices for premium subscribers in various global markets, aligning with similar moves by competitors like Apple and Amazon.

Spotify’s strategy has included substantial investments in market expansions and exclusive content, such as podcasts. Recently, it renewed a multi-year partnership deal with Joe Rogan for his chart-topping podcast.

Looking ahead to the first quarter of 2024, Spotify anticipates reaching 618 million monthly active users and achieving an operating profit of 180 million euros.

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