The firm has gone from dropping 34 million euros in 2021 to 430 in 2022Spotify has introduced the dismissal of 600 individuals, 6% of its workforceParadoxically the variety of subscribers has elevated
The streaming music and podcast manufacturing and distribution firm Spotify has multiplied its losses by twelve. It has registered a drop of 430 million euros in 2022, in comparison with the 34 million that it stopped coming into in 2021. These are firm knowledge.
The firm, which final week introduced a workforce adjustment that can imply the departure of some 600 individuals, 6% of its employees, attributed this evolution to the discount in margins and the rise in working bills as a result of improve within the prices of employees and funding in promoting.
Spotify’s revenues for the 12 months as a complete grew by 21.3%, reaching 11,727 million euros. At the identical time, the prices related to income, largely derived from the royalties that Spotify has to pay to artists and document corporations, rose 24.4%, to eight,801 million.
However, the variety of each ‘Premium’ and free customers is growing
Spotify closed 2022 with 489 million lively month-to-month customers within the fourth quarter, 20% greater than in the identical interval final 12 months. Of that quantity, 205 million had been ‘premium’ subscribers, 14% extra, whereas one other 295 million had been free customers, 25% extra.
Thus, the corporate exceeded its forecasts of closing the 12 months with 479 million lively month-to-month customers, together with 202 million premium customers.
Between October and December, the agency recorded losses of 270 million euros, in comparison with the unfavourable results of 39 million within the fourth quarter of 2021, whereas its revenues elevated by 17.7%, to three,166 million euros.
Spotify’s CEO, Daniel Ek, highlighted through Twitter that the fourth quarter of 2022 has introduced “nice development for the platform”. “We completed 2022 robust regardless of a difficult 12 months,” he mentioned, on the similar time assuring that the platform will work with “extra depth and energy.” “We will promote even higher effectivity in 2023”, he has sentenced.
Looking forward to the primary quarter of 2023, Spotify is assured of reaching 500 million lively month-to-month customers, together with a goal of 207 million premium customers, with the expectation of reaching some 3.1 billion in income within the quarter and working losses of 194 million .