# Spotify’s monthly active users top 500 million, beat estimate Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-04-25 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Spotify Exceeds 500 Million Monthly Users, Shares Surge 5% Meta Description: Spotify surpasses expectations with 515 million monthly active users and 210 million premium subscribers, boosting shares by 5%. URL: https://financedigest.com/spotifys-monthly-active-users-top-500-million-beat-estimatehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-04-25t102111z1lynxmpej3o0d0rtroptp4spotify-tech-results-1736814102233-compressed.jpg) # Spotify’s monthly active users top 500 million, beat estimate By Supantha Mukherjee STOCKHOLM (Reuters) -Spotify Technology SA has crossed the half billion mark for monthly active users for the first time, helped by the music streaming company’s expansion into more markets, it said on Tuesday, sending its shares up 5%. The number of monthly active users rose to 515 million in the first quarter, beating Spotify’s guidance and analysts’ forecast of 500 million, according to IBES data from Refinitiv. Premium subscribers, who account for most of its revenue, rose 15% to 210 million, topping [estimates of 206 million](https://www.financedigest.com/global-thermoelectric-generator-market-is-estimated-to-cross-us-720-million-by-2021.html "GLOBAL THERMOELECTRIC GENERATOR MARKET IS ESTIMATED TO CROSS US 0 MILLION BY 2021"). Its premium subscriber [forecast of 217 million for the current quarter also beat](https://www.financedigest.com/elevator-maker-kone-hikes-outlook-as-q1-profit-orders-beat-forecasts-2.html "Elevator maker Kone hikes outlook as Q1 profit, orders beat forecasts") expectations of 212 million. The [company forecast](https://www.financedigest.com/healthcare-information-systems-market-2021-global-leading-companies-analysis-revenue-trends-and-forecasts-2027.html "Healthcare Information Systems Market 2021 Global Leading Companies Analysis, Revenue, Trends and Forecasts 2027") monthly active users of 530 million. Spotify last year laid out plans to get one billion users by 2030 and reach $100 billion in [annual revenue](https://www.financedigest.com/xerox-shares-slide-as-annual-revenue-cash-flow-forecasts-take-a-hit.html "Xerox shares slide as annual revenue, cash flow forecasts take a hit"). It also promised high-margin [returns from its costly](https://www.financedigest.com/boohoo-warns-on-outlook-blaming-higher-returns-and-pandemic-costs.html "Boohoo warns on outlook, blaming higher returns and pandemic costs") expansion into podcasts and audiobooks. “Spotify is not sort of one silver bullet, but it’s rather 100 or 1,000 things that we are doing that sort of compounds and adds to the story,” CEO Daniel Ek told Reuters. However, the company’s quarterly revenue of 3.04 [billion euros](https://www.financedigest.com/amazon-com-to-invest-over-1-billion-euros-in-european-electric-van-truck-fleet.html "Amazon.com to invest over 1 billion euros in European electric van, truck fleet") ($3.35 billion) missed analyst estimates of 3.08 billion euros, and it posted a bigger loss than expected. “There’s still a kind of a lot of macro choppiness in Q1 so that impacts us a little bit,” Ek said. A lot of subscribers come on free trials, or part of a family plan, and Spotify doesn’t get revenue right away, which starts coming in a quarter later, he said. A soft ad market due to ongoing [economic uncertainty](https://www.financedigest.com/combatting-economic-uncertainty-in-2023-with-the-payments-sector.html "Combatting economic uncertainty in 2023 with the payments sector") has led to lower prices, hitting Spotify’s margins. [Gross margin dipped to 25.2% from 25.3% in the year-earlier quarter](https://www.financedigest.com/delivery-hero-sees-higher-gross-merchandise-value-in-third-quarter.html "Delivery Hero sees higher gross merchandise value in third quarter"). Spotify’s current-quarter revenue forecast of 3.2 billion euros also missed [expectations](https://www.financedigest.com/factbox-big-banks-expected-to-rack-up-more-than-1-billion-in-fines-for-whatsapp-use.html "Factbox-Big banks expected to rack up more than billion in fines for WhatsApp use") of 3.26 billion euros. ($1 = 0.9066 euros) (Reporting by Supantha Mukherjee in StockholmEditing by Niklas Pollard and Mark Potter) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---