Spotify now boasts 640 million users worldwide, marking an 11% increase compared to the third quarter of last year. The number of paying subscribers grew by 12% over the same period, reaching 252 million users.
Due to last summer’s price hikes, paying users are now generating more revenue per person for Spotify than last year. The music streaming platform now earns an average of €13.95 per paying user per quarter, up from €12.88 in the same period last year. Over the past three months, Spotify’s paying subscribers generated over €3.5 billion in revenue. In addition, the company earned €472 million from advertising. Free users, who listen to music with ads between songs, contributed an average of €1.17 per listener in ad revenue during the last quarter.
Spotify’s total revenue for the past quarter reached nearly €4 billion, representing a 19% increase from the same period last year. The platform reported a net profit of €454 million—the highest in the company’s history. This record profit is noteworthy considering that until last year, Spotify had nearly seventeen consecutive years of losses. The company took significant steps to cut costs last year, laying off 2,300 employees and implementing price increases, which have evidently paid off.