Besides experiencing a significant loss due to high operating costs of 44%, Spotify generated Monthly Active Users (MAU) of 489 million people in 2022.
Heaptalk, Jakarta — A music streaming and podcast platform, Spotify, has released the fourth quarter (Q4) report, which indicates the growth of its subscribers and the loss of the company in terms of its business operations.
In the latest report, this technology company recorded the loss of its business operations, attaining €231 million, or approximately US$254 million, during the Q4 of 2022. This output increased 33 times, compared to a similar period worth €7 million, or nearly US$7.7 million.
As the Management team of Spotify explained, the swelling operating loss was due to operating expenses which also increased by 44% YoY, including higher personnel costs due to the growth of employees number, the rise of advertising costs, and changes in currency values.
A similar report also discloses the total revenue of Spotify in 2022, reaching €3.2 billion, or equal to US$3.5 billion in 2022. This outcome has enhanced by 18% from the previous year, worth €2.7 billion, approximately US$2.9 billion in 2021. This platform noticed this amount came from the premium subscribers. As recorded by the report, Spotify obtained around 205 premium users in 2022.
Meanwhile, in terms of active users, Spotify recorded Monthly Active Users (MAU) of around 489 million people, swelling 20% YoY. This result consists of the non-premium users who operate this music streaming platform with the advertisement within the application. The users amount climbed from the former in Q3 of 20222, with a total of MAU only achieving 456 million people, including 195 million premium users.
“The total of our monthly active users has scored a higher record quarterly, with the enhancement of about 33 million customers, exceeding 10 million of our target,” added the Management team of Spotify, cited in techinasia.
On the other hand, Spotify apprised that the Free Cash Flow has performed a terrible output, demonstrating a diminishment from €103, or nearly USD113 million, becoming €73 million (USD80.4 million) in Q4 of 2022.
“We have forecasted our free cash flow report negatively. Nevertheless, the free cash flow report throughout the year has performed positively. Thus, we anticipated this trend would continue to budge positively in a year ahead,” the Spotify representative said.
Entering 2023, this Swedish audio-streaming company aims to hook more users to around 500 million people for the first quarter of this year, with the expected premium subscribers to about 207 users. The company also affirmed to continue suppressing the business operations loss while attempting to reach 1 billion users by 2030 as the long-term business target of Spotify.
