Spotify shared, on January 31st, its financial results for the last quarter of 2022. A few days after the announcement the dismissal of 600 employeesthe Swedish company approaching 500 million users monthly resources worldwide while revealing heavier losses.
No profit for Spotify
Over the past three months, Spotify has been recording 3.2 billion euros in turnovera growth of 18% compared to the last quarter of 2021. Premium subscriptions are highlighted 2.7 billion euros while advertising has increased 449 million euros. An increase of 18% and 14% respectively compared to the current year.
However, the music streaming platform displays (PDF) an operating loss of 231 million euros in the last quarter. For comparison, in 2021, for the same period of the year, this loss amounted to 39 million euros. At the same time, operating costs increased by 44% From one year to the next.
500 million monthly active users are in sight
On the side of its users, reveals Spotify a 20% increase. within the year to be achieved the 489 million users per month. This is 33 million more subscribers than the previous quarter and 10 million more than the company forecast. The number of people who have subscribed to the offer of premium services grew 14% to 205 million subscribers.
Image: Spotify.
In its press release, the music giant welcomes, “ we finished 2022 with a good performance in the fourth quarterwhere nearly all of our key performance indicators exceeded expectations “.
Spotify hit by a wave of layoffs
Despite everything, the group based in Stockholm prepares the layoff of 6% of its staff, or about 600 employees. Like many tech companies that have taken advantage of the pandemic to grow rapidly, Spotify has made risky bets by recruiting with a vengeance. Last September, the streaming platform it employed 9,800 people full time.
In the face of the economic downturn, said Daniel Ek, CEO and co-founder of Spotify having to restructure the organization of the company. She explained what she wanted good pandemic momentum and I thought our broad global business and lower risk of the impact of the declining advertising market would protect us. Looking back, I was too ambitious “.
For Q1 2023, Spotify be careful and aims for a turnover of 3.1 billion euros. These next three will also score exceeding the symbolic threshold of 500 million users monthly active subscriptions, for an expected 207 million premium subscribers.
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