Spotify reaches 381 million listeners in Q3

This is according to the music streaming company’s earnings report for Q3 in 2021 published this week. The figure represents an increase of 16 million MAUs and 7 million subscribers from the previous quarter.

Spotify’s guidance for Q3 2021 included MAUs between 377 and 382 million and premium subscribers between 170 and 174 million.

Spotify’s subscriber base returned €2.178bn (about $2.52bn) in Q3, a 6% jump from €2.056bn generated in Q2. The company’s average monthly revenue per user (ARPU) hit €4.34 in Q3, up from 4% compared to the same period last year. The music streaming company says that it “saw a benefit to ARPU primarily from our price increases”.

Ad-supported revenue reached €323m in Q3, a 17% jump from €275 made in the prior quarter and up by 75% year-on-year. Spotify’s ad-supported MAUs grew by 10 million from 210 million in Q2.

Spotify reported an operating profit of €75m in Q3 2021, compared to an operating loss of €40m last year. 

“Nearly all of [Spotify’s] major metrics finished better than expected in Q3, including MAUs, revenue, gross margin and operating income,” a letter to shareholders reads. “Subscriber growth was inline and importantly, ARPU growth increased year-on-year. Additionally, we saw another quarter of significant advertising strength and user engagement metrics across many markets showed encouraging signs of growth.”

Spotify told its shareholders that it experienced double-digit year-on-year growth in all regions with “particular strength in Rest of World where performance was aided by the resumption of marketing activity in India along with above-plan growth in the Philippines and Indonesia”.

The music streaming company also singled out South Korea, Bangladesh and Pakistan as outperforming markets and “improved momentum across the 86 markets launched earlier this year.

Spotify added: “Our music business was driven by growth in impressions, a meaningful improvement in sell-through rate, and double-digit CPM growth.

“Our podcast business was driven by strong double-digit year-on-year growth at existing Spotify studios (The Ringer, Parcast, Spotify Studios and Gimlet) along with the Megaphone acquisition and the exclusive licensing of the Joe Rogan Experience, Armchair Expert with Dax Shephard and Call Her Daddy.”

The company’s guidance for Q4 2021 includes total MAUs of between 400 and 407 million, premium subscribers of between 177 and 181 million and total revenue of €2.54 and €2.68bn.

Spotify CEO and founder Daniel Ek said: “We had a very strong quarter. The business is doing really well and I’m pleased that we continue to deliver across the areas that are fundamental to our growth and long term strategy.

“Audio is our right to win. While we have been relentless in our pursuit of being the world’s largest audio platform, it’s still early days and we are just getting started.”