“I said that while many believe that Spotify has a great product, we needed to prove that we could also be a great business. I think we’re really starting to show this now.” –Daniel Ek, CEO, Spotify
In an earnings report summary that would please even the most irascible investor, Spotify released a raft of upward-moving financials and number of subscribers.
A few headline figures:
- Record high operating income (266M Euros / $289M)
- Record high gross margin (29.2%)
- Record high monthly active users: (626 million)
- Record high Premium subscribers: (246 million)
As always, Premium subscription revenue pulled in much more revenue than ad-supported revenue — about five times as much. But both money-making categories grew vigorously year-over-year:
- Premium +12%
- Ad-supported +15%
Gross profit for Q2 landed at $1.1 billion, also a record high quarterly figure.
The two discrete revenue flows (Premium subscription and ad-supported) are illustrated over 12 months:
Continue to watch RAIN for detailed coverage of Spotify’s Q2 earnings call.
