2024-05-11 17:22:41
The Swedish company has been expanding its user base for years by offering subscribers access to podcasts and audiobooks.
However, its quarterly master plan was not implemented because the number of monthly active users was not reached.
Last year, the company cut its workforce by 17 percent to cut costs.
Spotify CEO Daniel Ek said last December that around 1,500 jobs would be cut as part of “fundamental steps to adjust our costs” to help the company meet its goals.
The technology company is on a mission to expand globally and by 2030. reach one billion users.
On Tuesday, the company announced that the goal will be taken seriously again, and the money will be spent on attracting new audiences.
“We will increase marketing spending again within the year,” said Mr. Ek. “Because we want to continue to grow, and we’ve seen that we may have pulled back a little too much in some ‘territories’.”
Most of Spotify’s profits come from its podcast business. Gross margin rose to 27.6 percent in the quarter, up from 25.2 percent last year. a year ago.
It has invested more than a billion euros to build its network business, including hundreds of millions of euros that have been spent on popular shows such as The Joe Rogan Experience.
“We had a hard time with that last year. Now it has become another profit center,” said Mr. Ek.
The company’s quarterly revenue grew by 20 percent. – up to 3.64 billion euros, and exceeded the projected 3.61 billion.
In order to increase revenue, Spotify raised prices and “experimented” with different subscription plans.
The company’s CEO revealed that one of the subscription plans will be for “those users who only care about the music side.”
Spotify currently has 615 million users, down from its forecast of 618 million. It is aimed that the number of users will reach 631 million by the middle of the year.
It is true that the number of “premium” subscribers increased by 14 percent in the first quarter. – up to 239 million, as much as was forecast.
Shares of Spotify, which initially fell on quarterly results, reversed course and rose 8% in premarket trading on Tuesday.
in 2006 since its launch, the Spotify platform has invested a huge amount of money in growing the business and providing exclusive content.
The platform has featured podcasts by Michelle and Barack Obama, as well as the Duke and Duchess of Sussex.
The deal cost Harry and Meghan a reported $25m (£19.7m) and delivered just 12 episodes in the two-and-a-half years before the deal closed last June.
Let’s pay the BBC.
2024-05-11 17:22:41