Spotify First-Quarter Revenues Jump 33%

Q1 Results

SPOTIFY TECHNOLOGY S.A. first quarter revenue rose 33% year-to-year to €1.511 billion (US $1.7 billion), with premium revenue up 34% to €1.385 billion ($1.55 billion). Average revenue per user was flat at €4.71 ($5.27), while ad-supported revenue grew 24% to €126 million ($141 million), underperforming the company's expectations in the U.S. and with its "sponsored sessions" videos. The company reported a "small incremental benefit from podcasts" during the quarter. Meanwhile, measurement related revenues doubled from 20% to 40% of total ad revenues, while programmatic and self-serve revenues grew 53%, accounting for 26% of total ad-supported revenue.

The number of monthly active users increased 26% to 217 million, including the launch in INDIA in FEBRUARY. SPOTIFY also saw a 32% jump in the number of premium subscribers, attributed to a plan promotion in NORTH AMERICA and continued growth for the Family Plan.

SPOTIFY's earnings release also valued the deals to buy GIMLET MEDIA and ANCHOR FM at €308 million ($344 million) combined and the purchase of CUTLER MEDIA, LLC (PARCAST) at about €50 million ($56 million); the aggregate purchase price of €358 million ($400 million) "is roughly equivalent to SPOTIFY’s cumulative Free Cash Flow over the last three quarters, or alternatively, 55% of the Q2 increase in the value of our TME (TENCENT MUSIC) investment," the company stated.

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