Spotify posts 138 million paid subscribers, big operating loss in first earnings entirely during pandemic
Spotify's first full earnings period during the COVID-19 pandemic are in, and by most measures the globe's largest audio streamer has… met expectations.
Spotify logo is displayed on the screen of a smart phone on Jan. 1, 2020.Spotify's first full earnings period during the COVID-19 pandemic are in, and by most measures the globe's largest audio streamer has… met expectations.The company on Wednesday said its user base grew to 138 million paid subscribers and 299 total monthly active users during the three months ended June 30. That is an increase of 8 million premium users and 67 MAUs compared to the first quarter of 2020, which included the first couple weeks of the pandemic.
Total revenue in the second quarter was €1.89 billion ($2.22 billion in current dollars), up 13% year over year but only 2% higher than Q1's €1.85 billion ($2.17 billion) tally. The vast majority of Q2 revenue came from subscriber income, which grew 17% y/y to €1.76 billion ($2.07 billion), meeting the company's earlier guidance. Due to the effects of COVID-19, ad-supported revenue dropped 21% during the quarter to €131 million ($154 million) — though CEO
Daniel Eknoted during an investors call that sales improved significantly by June.Spotify's share price fell to 6% $251.03 on Wednesday morning from Thursday's $267.12 closing price and had recovered to $260.63, down 2.4%, by midday. It reached $299.67 on July 22, a 99% year-to-date gain that pushed the company's market capitalization to $55.5 billion.
"We had a very strong quarter," Ek said in prepared remarks."I've never been more bullish about where we are today and our future opportunity. There are still billions of people who have yet to discover on-demand music streaming or listen to a podcast, and many more we have yet to reach in markets around the world."
Spotify said its second-quarter operating loss amounted to €167 million ($196 million), well below guidance of -€45 million to -€95 million due mainly to accrued"social costs," a type of payroll tax on stock-based compensation in some countries. In Sweden, companies pay a 31.42% tax on the profit of the sale of stock options or the vesting of restricted stock. When the share price increases, the social cost (accrued) expense also increases.
The firm's net loss also ballooned to €356 million ($418 million), compared to €76 million ($89 million) in the year-ago period. Spotify's premium average revenue per user (ARPU) was down 7% y/y to €4.41 ($5.18) with the dominant driver being"product mix." Operating expenses totaled €646 million ($760 million) for the quarter, up 48% y/y and well above forecast, the firm said. Spotify currently has 6,049 full time employees globally.
Reflecting on the impact of COVID-19 to monthly activity on the service, the company said growth in North America"exceeded expectations" and India outperformed forecasts, while Latin America saw some of the fastest growth in MAUs. The company said that earlier in the quarter, as the pandemic was shutting down economies around the globe, they saw increases in churn and payment failures from premium users but"things rebounded significantly" in June.
The company also said that as of June 30,"global consumption hours have recovered to pre-COVID levels. All regions have fully recovered with the exception of Latin America which is approximately 6% below peak levels prior to the global health crisis. Regions where the spread of COVID-19 appears to be slowing, including Asia-Pacific and Europe, have led the recovery in consumption. Consumption trends by platform are beginning to normalize as well; in-car listening at the end of the quarter was less than 10% below pre-COVID levels having recovered from a 50% decline at the trough in April."
As for podcasts, Spotify said it has grown its catalog by 50% this year to 1.5 million shows and that there has been strong growth among MAUs accessing the medium. During Q2, the company announced a multi-year exclusive licensing deal with The Joe Rogan Experience, which will debut on Spotify in September and become exclusive later this year. It also announced multi-year partnerships with Warner Bros. and DC comics to produce original content.
The company snagged another big catch in Q3, with a just-released new podcast starring former First Lady Michelle Obama. Read more: billboard »
Welcome to the official SandWoah channel! On this page you'll find satisfying & relaxing sand videos. If you are stressed out or need some help with relaxing...
It's not surprising, because KINGS ARE BACK!!!🔥🔥 MTVHottest BTS_twt JoeBudden JoeBuddenPod thisisrory MAL___ parksmusic looks like they’ve got yall money fellas lol ok Yeah.. Because of BTS, we downloaded Spotify 😊 Good. It’s way they deserve for blackballing Nicki Minaj. Onika voodoo bitches Stream Zayn's second album 😗✌
Spotify for music 👍 ADD SOUL TO YOUR SPOTIFY PLAYLIST NOW! ok they should pay their artists more
Caterpillar posts lower earnings as coronavirus hits equipment salesCaterpillar Inc on Friday reported a smaller-than-expected decline in second-quarter earnings, helped by lower manufacturing costs, even as the pandemic made customers wary of big equipment purchases.
U.S. Stock Futures Edge Higher as Tech Stocks RallyShares of Amazon.com, Facebook and Apple gained in offhours trading after the companies’ earnings highlighted the resilience of their operations during the coronavirus pandemic. Well good for them Rich getting richer! Just what we need How in the hell can the market be up, when US economy contracted by 1/3 last quarter and COVID is getting worse. scam
$600 Unemployment Checks May Return. Trump, GOP May Be Shifting Stance On It.The $600 expanded unemployment benefit — which has helped keep around 25 million Americans afloat during the pandemic — officially ran out at midnight on Friday. Evictions already out.... So it served the GOP purpose to not agree... Now, once evictions go out, LL can't afford their mortgages, watch the rich buy up all the land like Hurricane Katrina... SMH Well since GOP caused it. 😐 the republicans have to agree to it or lose a lot of votes.$600 is a lot better than the $200 the republicans want to give to the people, remember this when you vote.
The Ethics of Dining Out Right Now“Government regulations especially in New York and NYC seem to favor, in my opinion, protecting diners more than staffers... to have those regulations that protect diners over staffers is horrific.” — qualityrye gguarente Asinine tripe
Big Oil Companies Lose Billions, Prepare for Prolonged PandemicAlthough demand and commodity prices have shown signs of recovery, Chevron said they aren’t back to pre-Covid levels, and warned its results could continue to be depressed through the third quarter 😭 This is the time to take as many losses as possible. Throw in conservative guidance and the chances of beating estimates in the future improves.
Spotify Kicks Off an Earnings Season Like No Other: What to Watch for as Music Biz Lays Out Pandemic's ImpactStarting with Spotify on Wednesday (July 29) and ending August 20, the second-quarter financials of 13 publicly traded music-related companies will lay bare the damage done by the coronavirus pandemic. 👀 Spotify kicks off an earnings season like no other: What to watch for as music biz lays out pandemic’s impact