Stockholm: Music streaming giant Spotify reported a significant milestone with 713 million active users by the end of the third quarter. The company also noted a 12 percent increase in its paying subscribers, reaching a total of 281 million.
According to Bangladesh Sangbad Sangstha, Spotify’s revenue grew by seven percent, amounting to 4.3 billion euros ($4.9 billion), surpassing its initial guidance of 4.2 billion euros. This growth was attributed to the increase in paying subscribers, despite a downturn in advertising revenue, the Swedish company stated.
Spotify’s Founder and CEO, Daniel Ek, expressed optimism about the company’s trajectory, stating, “The business is healthy.” He emphasized the importance of user engagement, highlighting the achievement of 700 million users consistently engaging with the platform.
The financial performance of Spotify also saw improvements in operating income, which rose by 28 percent to 582 million euros. Additionally, net income more than doubled, reaching 899 million euros. Looking ahead, Spotify anticipates reaching 745 million active users and 289 million paying subscribers by year-end.
In a leadership update, Spotify announced in late September that Daniel Ek would transition from his role as CEO to executive chairman on January 1. Gustav Soderstrom, the chief product and technology officer, along with Alex Norstrom, the chief business officer, will assume the roles of co-CEOs. Ek, who co-founded Spotify with Martin Lorentzon in 2006, will continue to influence the company’s strategic direction in his new role.