Bottom line: Spotify noted that from a content consumption standpoint, global consumption hours during the quarter topped pre-Covid levels and that all regions have recovered. "Consumption trends by platform have returned to normal usage, including in-car listening hours which are now above the pre-Covid peak," the company added. Things could change if we go through a second wave of shutdowns, but for now, it's business as usual.
Spotify on Thursday as part of its third quarter financial release said it now has 320 million total monthly active users (MAUs). That's up from 299 million in the second quarter and an increase of 29 percent year over year.
Spotify's premium subscriber count, meaning those that pay a fee to access the service ad-free, reached 144 million during the most recent three-month period, up five percent sequentially and 27 percent compared to the same period in 2019. The number of ad-supported MAUs (those who listen for free) reached 185 million, up 31 percent YoY and nine percent quarter over quarter.
The Swedish streaming giant said its monthly active user growth supports the long-term health of their customer acquisition funnel and gives them the confidence needed to expand into new markets.
Turning its attention to financials, Spotify brought in 1.975 billion euros in revenue ($2.31 billion) in the third quarter, a 14 percent increase compared to the same period a year earlier. According to Investors.com, analysts were expecting closer to $2.36 billion in sales.
In response, the company's share value is down more than nine percent as of writing, despite pulling in more subscribers than expected.
Image credit: Christopher Penler, Mohd Syis Zulkipli