Spotify, the popular music streaming platform, disclosed significant growth in its third quarter (Q3) performance. The company revealed that it has experienced substantial increases in both its paid subscribers and monthly active users (MAUs).
During Q3, Spotify’s paid subscriber base expanded by an impressive 16 percent year-on-year, reaching a total of 226 million. The company outperformed its own guidance by adding 6 million new paid users, surpassing their expectations by 2 million.
The platform’s MAUs also exhibited remarkable growth, with a 26 percent increase, bringing the total to 574 million. This marks the second-highest Q3 net addition performance in the company’s history, says Spotify CEO, Daniel Ek.
Financially, Spotify demonstrated a return to profitability in Q3, reporting a profit of 65 million euros (approximately $69 million). The company’s operating income for the quarter was 32 million euros (about $34 million), marking a significant milestone in its financial performance.
The platform’s total revenue also showed a healthy 11 percent growth, reaching 3.4 billion euros.
In an effort to further boost its revenue, Spotify raised premium subscription prices in several global markets, including the United States. The Premium Individual plan in the US now costs $10.99, up from $9.99, while the Premium Duo plan increased to $14.99 from $12.99. The Premium Family plan is now priced at $16.99, up from $15.99, and the Student plan has been adjusted to $5.99, up from $4.99.
Additionally, in a bid to incentivize more users to subscribe to its paid services, the Swedish music streaming company is currently testing the option to make in-app lyrics a premium-only feature.
Spotify’s impressive Q3 results indicate that the platform remains a strong player in the competitive music streaming industry, continuing to attract and retain a substantial number of users.