Spotify just released their Q2 earnings and they’re impressive. They now have 299 million monthly active users (MAUs), 29% growth year over year – 5% growth over the quarter.
Spotify explained that they did see more negative than expected results in Q1, due to the pandemic, however that has turned around and now they’re expected to fully hit their forecasts through the end of the year.
At the end of Q2, Spotify had 138 million premium subscribers, a growth of 27% Y/Y (slightly beating analysts’ expectations). They noted that their family plan continued to be a significant driver.
Another key factor Spotify pushed in the report was their expansion into 12 new European markets, now resulting in a total of 92 markets.
Total revenue for the streaming giant was 1.889 million euros, a growth of 13% Y/Y in Q2.
Ad-supported revenue fell 21% Y/Y as a result of COVID-19, but was slightly above their expectations. The quarter started off particularly slow but improved steadily with momentum in June overcoming the weakness early on.
A large part of Spotify’s recent growth is due to the significant amount of people staying home. Growth through podcasts, which has been a focus of Spotify’s as of late, has surged. The reasoning behind this has to be linked with the decrease in radio listenership. Many people are not driving, therefore not listening to radio and instead exploring the plethora of podcasts on Spotify.