Spotify grows users to 433 million, beats Q2 revenue guidance

Spotify grew its userbase to 433 million active listeners in Q2, above its expectations of 428 million users, the company announced in its earnings release today.

Premium subscriptions also rose to 188 million, eclipsing estimates of 187 million.

The overall subscription growth amounts to a 19% increase year-over-year.

Spotify also beat guidance on total revenue, earning $2.91bn versus $2.85bn expected.

Notably, Spotify’s ad-supported revenue increased 31% year-over-year to $366m, reaching an all-time high as a percentage of Spotify’s overall revenue (13%).

In a January interview with The Media Leader, Spotify EMEA sales chief Rak Patel stated he expected that long-term advertising would make up at least 20% of Spotify’s revenue.

The music and podcast streaming company has had a tumultuous year, receiving backlash in the winter over platforming misinformation via The Joe Rogan Experience and losing the Obamas to podcasting competitor Audible.

Spotify’s stock rose over 6% in pre-market trading.