Top Stories
Spotify slightly misses revenue prediction, falls short of user growth target
Global Banking and Finance Review
Company
By Martin Coulter
LONDON (Reuters) – Spotify reported quarterly results broadly in line with analyst expectations on Tuesday, but failed to meet its own target for user growth.
The Swedish audio-streaming giant sought to reduce costs through layoffs and cuts to its marketing budget last year, while trying to grow its user base through promotions and new investments in podcasts.
Revenue rose to 3.81 billion euros ($4.14 billion) for the second quarter of 2024, fractionally below analysts’ estimates of 3.82 billion euros, according to IBES data from LSEG.
Spotify previously said it aimed to reach 631 million monthly active users (MAUs). The company fell short of this target, however, attracting 626 million MAUs for the quarter.
The company said it had seen user numbers grow across all regions, but that it had not met its MAU goal due to “continued recalibration” of marketing activities.
($1 = 0.9200 euros)
(Reporting by Martin Coulter, Editing by Louise Heavens)
Revenue is the total amount of money generated by a company from its business activities, typically from sales of goods or services, before any expenses are deducted.
Monthly active users (MAUs) refer to the number of unique users who engage with a service or product within a month, indicating the level of user engagement and growth.
Podcasts are digital audio files available for streaming or download, often part of a series, covering various topics and allowing users to listen on-demand.
A marketing budget is a financial plan that outlines the expected costs for marketing activities over a specific period, helping businesses allocate resources effectively.
User growth refers to the increase in the number of users or customers engaging with a product or service over a specific period, often measured as a percentage.
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