Driven by the success of better-than-expected growth in markets like India and Latin America, Spotify on Wednesday announced its total monthly active users (MAUs) grew 20 per cent YoY to 456 million in the quarter ending September 30, 2022. Spotify's MAUs in the second quarter were 433 million.
The Swedish music streaming giant said its third quarterly performance was positively impacted by "outperformance" across all regions and better than expected intake in India as a result of a multimedia marketing campaign driving activations and reactivations. Spotify also witnessed growth across Latin America, led by Brazil, due to marketing and OEM strength.
"There is a lot of global uncertainty, but our business continues to perform very nicely around the world. With one quarter left in a year that has seen war, a lingering pandemic, inflation, supply chain disruption, and threats of a global recession, I am really proud of all that we have accomplished and that despite all of this, we are precisely where we thought we’d be," Daniel Ek, Founder and CEO, Spotify, said in a statement.
Spotify, in its third quarter result, mentioned that its premium subscriber base stands at 195 million now. Spotify Premium grew 13 per cent YoY to 195 million, up from 188 million last quarter.
"Quarterly performance versus our guidance was impacted by: Outperformance across all regions led by Latin America, better than expected Q3 promotional campaign results across all regions and continued strength in multi-user plans," the company said.
In the quarterly results, Spotify also mentioned that its total revenue witnessed a strong growth of 21 per cent YoY to just over €3 billion, slightly ahead of expectations and Spotify Premium revenue grew 22 per cent YoY to €2.7 billion. Spotify's advertising business grew 19 per cent YoY to €385 million, reaching 13 per cent of total revenue, reflecting double-digit growth across all regions with the exception of Europe which saw a decline in the wake of regional economic conditions.