Spotify beat guidance for monthly active users in the first quarter, as the number of consumers on the streaming giant’s ad-supported tier rose by double-digits, helping the streaming giant meet its revenue target despite a 5% decline in ad-supported revenue.
Spotify reported it added 10 million monthly users for a total of 761 million monthly active users (MAUs), driven by ad-supported MAUs rising 14% to 483 million in the quarter ending March 31 compared to a year ago. Premium subscribers rose by 9% to 293 million, in line with target expectations. The company reported 4.5 billion euros ($5.3 billion) in revenue for the first quarter, as 10% growth in subscriber revenue outweighed a 5% decline in revenue from ad-supported accounts compared to a year ago.
An ongoing concern for streaming companies has been achieving growth even after most adults in developed markets have streaming accounts. Spotify’s executives noted they saw growth in their free tier in highly saturated markets like the United States, with users there listening and watching content more frequently each month since Spotify rolled out certain personalization features.
“We’re well positioned because of our large, engaged user base, deep creator relationships, and years of investment in personalization and infrastructure at scale,” co-CEO Gustav Söderström said in a press release. “These create a platform that can take advantage of this moment and unlock entirely new growth vectors that will enable us to climb new mountains previously unimaginable. We see significant room to grow across users, formats and engagement and to expand what Spotify is and can become over time.”
Revenue from premium accounts in the quarter rose 10% to 4.15 billion euros ($4.87 billion), while revenue from ad-supported accounts declined 5% to 385 million euros ($456.6 million).
Gross profit rose 13% in the quarter from a year ago for a gross margin of 33%.
The company will discuss earnings during a presentation to investors at 8 a.m. New York time. The company’s stock was down 4.28% in pre-market trading.
Here are the key take-aways from Spotify’s first quarter results:
- 761 million monthly active users was up 10 million from a year ago.
- 293 million premium subscribers rose 3 million subscribers, in line with previous guidance.
- 483 million ad-supported users rose 60 million from a year ago, an increase of 14%.
- Total revenue was 4.53 billion euros for the first quarter.
- $11B paid out to the music industry in 2025, $70 billion paid out to the music industry since Spotify’s founding
- Spotify works across more than 2,000 devices from over 200 brands
Daily newsletters straight to your inbox
Sign Up
