Strong Q3 performance for Spotify as it returns to profit

Spotify has released its quarter three 2023 figures, which show it has returned to profitability.

The company said it has delivered strong results in the quarter as all of its key indicators exceeded guidance.

Monthly active users increased by 26% to 574 million and 2 million ahead of guidance. It represents the second largest Q3 net addition performance in the company’s history.

There was a 16% year on year increase in subscribers to 226 million. Net additions of 6 million were 2 million ahead of guidance.

The company’s total revenue was €3.4 billion, representing a growth of 11% year-on-year, which exceeded guidance. Gross margin was also above guidance at 26.4%.

There was a small operating profit of €32 million, which reversed the losses of the previous quarter, which totalled €247 million. Gross profit for Q3 was up 18% to €885 million.