Spotify’s active users top 713 million with 281 million paying subscribers, revenue beats guidance at €4.3 billion, and Daniel Ek to step down as CEO.
STOCKHOLM: Music streaming giant Spotify has surpassed 713 million monthly active users, the company announced in its third-quarter results.
Paying subscribers grew by 12% year-on-year to reach 281 million, driving a 7% revenue increase to €4.3 billion.
This revenue figure exceeded the company’s own guidance of €4.2 billion, despite a decline in advertising income.
“The business is healthy,” said Spotify Founder and CEO Daniel Ek in a statement.
“It all comes back to user fundamentals and that’s where we are: 700 million users who keep coming back, engagement at all-time highs,” he added.
Operating income rose by 28% to €582 million, while net income more than doubled to €899 million.
The company expects to reach 745 million active users and 289 million paying subscribers by year-end.
In late September, Spotify announced that Ek will step down as CEO on January 1 and become executive chairman.
Gustav Soderstrom, chief product and technology officer, and Alex Norstrom, chief business officer, will take over as co-CEOs.
Ek co-founded Spotify with Martin Lorentzon in 2006. – AFP
