The third quarter performance report of Spotify for 2023 has exceeded the company’s previous estimations. Overall, the total revenue has grown by 11% compared to the same quarter in the previous year, reaching €3.357 billion. The operating profit is €32 million due to an improved initial profit margin of 26.4% and better cost controls. Additionally, free cash flow has increased to €216 million during the quarter.
The number of users has also seen an increase, reaching 574 million accounts. This is divided into 226 million premium accounts, which saw a 16% growth, and 361 million ad-supported accounts, which witnessed a 32% increase. This growth has been observed across all regions for both premium and ad-supported accounts.
In the third quarter, Spotify introduced noteworthy features such as Music Discovery, which offers users the opportunity to explore new, unheard songs. This feature has been accessed approximately 1.9 billion times per day on the platform. Other notable features launched during the previous quarter include Jam, which allows users to curate playlists for parties, and DJ, which is now available in 50 countries (although Thailand is not yet included).
TLDR: Spotify’s Q3 2023 performance exceeded expectations with 11% revenue growth, amounting to €3.357 billion. The company also experienced increased user numbers, reaching 574 million accounts, including 226 million premium and 361 million ad-supported accounts. New features like Music Discovery and expanded services like Jam and DJ were introduced during the quarter.