Spotify, the music streaming service, has reported its Q2 results. The company said the quarter was largely in line with expectations, with some metrics performing at the high end of its guidance range.
In a statement, Spotify said: “We finished the quarter with 180 million Monthly Active Users (MAU) and 83 million Premium Subscribers, up 30 per cent and 40 per cent respectively, YoY. Total Revenue was €1.27 billion, up 26 per cent YoY and 34 per cent YoY after adjusting for the negative impact from changes in foreign exchange rates.”
MONTHLY ACTIVE USERS
MAUs grew 30 per cent Y/Y to 180 million at the end of Q2. Growth in emerging regions of Latin America and Rest of World continues to outpace growth in the company’s more established markets.
Ad-Supported MAUs totaled 101 million at the end of Q2, up 23 per cent YoY. Earlier this year, Spotify began rolling out a new user interface for our Ad-Supported tier of service, the first major revision since our mobile product was introduced in 2014. Spotify said it expects this new user interface to drive improvements in engagement, retention, and conversion.
Premium Subscribers grew to 83 million, up 40 per cent YoY. The company;s mid-year campaign performed well and was a significant portion of subscriber intake in the quarter. Family Plan continues to be a primary driver of gross adds and lower churn due to strong retention. Spotify also extended its offer of a Spotify + Hulu bundle to Standard $9.99 Premium subscribers in the US, following the early success of the Spotify Student + Hulu bundle launched last fall.