Spotify has 600M monthly active users, including 236M premium subscribers
What's the story
Spotify has announced that it now has over 600 million monthly active users and 236 million paid subscribers.
The Q4 2023 earnings report shows a 5% increase in total users and a 4% rise in paid subscribers compared to the previous quarter.
In 2023, the music streaming giant welcomed 113 million new users and 31 million premium subscribers, setting new records for the Swedish company.
Spotify's Q4 results
Spotify's Q4 financials show revenue growth, reduced losses
The streaming giant reported €3.7 billion in revenues for Q4, marking a 16% year-on-year growth.
Although the company experienced an operating loss of €75 million, it was an improvement from the €231 million loss in the same period last year.
Advertising revenue hit a record high of €501 million, growing 12% year-on-year.
Despite the losses, average revenue per user increased to €4.60, up from €4.34 in the previous quarter.
Layoffs to drive efficiency
Workforce reduction and price increases amid growth
In December 2023, Spotify reduced its workforce by 17%, firing 1,500 employees to become more "productive and efficient." It was the company's third layoff round of the year.
Spotify also increased the price of premium subscription in the US for the first time, from $9.99 per month to $10.99 per month.
These changes coincided with record user additions and continued expansion into new markets, such as Latin America and the Rest of the World.
New attractions
Spotify Wrapped attracted over 225 million users
Spotify Wrapped, the company's year-end campaign that offers users insights into their listening habits on the platform, attracted over 225 million users.
Last November, it also announced that premium subscribers in the US can access 15 hours of audiobook content per month across 200,000 titles.
This development followed a partnership with TikTok, allowing users to save a song from a clip directly to the Spotify app.