Spotify Registers Quarterly Profit; Paid Subscribers Hit 226 Million

Spotify had forecast an operating income of 37 million euros in the current quarter.

This is its first quarterly profit since 2021. ( Image Source :Getty )

Spotify on Tuesday announced its third quarter (Q3) results and witnessed an increase of 16 per cent year-on-year (YoY) in paid subscribers base. The Swedish music streaming giant's paid users has hit 226 million in Q3. Spotify's Monthly Active Users (MAUs) were up 26 per cent to hit 574 million. The compay returned to profitability and reported operating income of 32 million euros for the quarter. This is its first quarterly profit since 2021.

“Truly stellar quarter. Improving step by step. Thanks to all Spotify teams around the world,” Spotify CEO Daniel Ek posted on X.

Truly stellar quarter. Improving step by step. Thanks to all Spotify teams around the world. pic.twitter.com/93duX6KlFk

— Daniel Ek (@eldsjal) October 24, 2023

Spotify had forecast an operating income of 37 million euros in the current quarter.

“We believe moving forward, we should see pretty consistent growth in our operating income,” Paul Vogel, Chief Financial Officer, Spotify, said in a statement.

In July, Spotify's paid subscribers base hit a new high at 220 million. The Swedish music streaming giant said it touched 551 million monthly active users (MAUs) and 220 million paid users, during its second quarter (Q2) earnings call.

Earlier this month, Spotify limited some key features for free users in India, in an attempt to give a boost to its paid user base in the country. Starting October 5, Spotify users in the free tier in India were barred from repeating songs, select a specific part of a song to listen to and play songs in a particular order.

The music streaming giant had said that this is an attempt to make free music listening experience more consistent across all markets.