In context: Spotify in the first quarter of 2021 added 11 million new monthly active users (MAUs) to its roster, pushing its total user count to 356 million and representing growth of 24 percent year over year. Growth has slowed a bit compared to what we saw last year during the pandemic, but that was largely to be expected given the circumstances.
Spotify said it finished within its guidance range but admitted that the number was below their internal expectations. Meaningful contributions came from markets like the US, Russia, India and Mexico, while regions such as Latin America and Europe underperformed.
Of those 356 million members, Spotify said 158 million are of the premium (paying) variety. The company added nearly four million paying subscribers in the quarter, near the top end of its guidance range, but still only an increase of about two percent compared to the previous quarter.
Ad-supported MAUs, meanwhile, climbed four percent in the quarter to 208 million, but these users aren't nearly as lucrative as premium subscribers.
Looking at the financials, Spotify's total revenue for the three-month period ending March 31, 2021, was €2.15 billion, or roughly $2.6 billion - an increase of 16 percent compared to the same period a year earlier.
Spotify specifically mentioned The Joe Rogan Experience podcast for performing "above expectations with respect to new user additions and engagement." There's also the new Car Thing smart player that Spotify announced earlier this month, although that won't show up on financial reports until Q2.
Turning its attention to the current quarter, Spotify said it expects to finish Q2 with between 366 million and 373 million total MAUs and total revenue between €2.16 and €2.36 billion.
Image credit Mats Wiklund