Spotify on Monday released financial results for the third fiscal quarter of 2019 ending September 30, 2019. The music streaming company said its business met expectations while its monthly active user and premium subscriber bases grew. Spotify said it registered an “exponential growth” in podcast streaming hours , which is up by 39% quarter on quarter.
Spotify said its monthly active user base has increased 30% y/y to 248 million. The company credited the developing regions for the growth. “Southeast Asia remains our fastest growing region (excluding India), and Y/Y growth in Q3 accelerated 1400 bps vs. 3Q18. Of note, India outperformed our forecast by 30% this quarter. This momentum was driven by a number of factors including the launch of our first broad-based marketing campaign, “Sunte Ja” (“Listen On”), since launch in February,” said the company in its report.
Premium subscribers were up by 31% Y/Y to hit 113 million base. The company said the growth was driven by the recently launched Family Plan and Student Plan. Spotify said podcast streaming hours grew 39% Q/Q. It also pointed out that the podcast adoption had hit almost 14% of the total monthly active users. The US, however, contributes the maximum podcast streams but Spotify noted that the listening is higher and growing faster in European markets.
In terms of financial metrics, the streaming service posted a “total revenue of EUR 1,731 million grew 28% Y/Y in Q3.” “Consolidated revenue modestly beat our expectations with Premium outperforming and Ad-Supported weaker than forecast. Premium revenue was EUR 1,561 million, up 29% Y/Y, while Ad-Supported revenue was EUR170 million, up 20% Y/Y,” Spotify said in its report.
The company said average revenue per user from its premium business in Q3 was down 1% Y/Y while the revenue growth in ad-supported business saw a 20% Y/Y growth, below its expectations.
