The news: Spotify exceeded investor expectations in Q4, reaching a landmark 489 million monthly users, up by 33 million, and 205 million premium subscribers. Revenues came to €3.17 billion ($3.33 billion), just above expectations, but losses widened to €1.40 per share as its podcasting business continues the long road toward its stated $20 billion goal.
- Advertising revenues grew 14% year over year and made up 14% of total revenues, which fell 1% from Q4 2021. The company’s stock soared Tuesday as other companies like social media and streaming services struggle to keep ad revenues in check.
How to look at Spotify: If your knowledge of Spotify was based on headlines alone, you’d assume the company’s primary business is podcasting. But despite its long-term podcasting ambitions, Spotify is still a music app first.
- Spotify is the leader in audio streaming. With free options, a relatively cheap premium subscription, and an extreme degree of personalization, Spotify has carved out a powerful presence not just in audio but in broader culture. Easy and constant access to music has become an expectation for consumers—something they’re willing to pay for even as other subscription services get cut.
- Q4 is the timing of its largest annual marketing project, Spotify Wrapped, which carefully catalogs a listener’s user habits in a shareable deck that’s been mimicked not just by audio competitors, but streaming services, gaming platforms, and more.