Streaming platform Spotify has revealed that its monthly active user base has surpassed 600 million, according to its latest earnings report for Q4 2023.
During this quarter, the company saw an increase of 28 million users, marking the second-largest quarterly growth in its history.
The Sweden-headquartered company highlighted that out of the 602 million users, over 236 million are paid subscribers, indicating a year-on-year growth of 15%.
Notably, Spotify hiked the price of its premium subscription tier in the U.S. last year, raising it from $9.99 to $10.99 per month.
The surge in subscribers was particularly driven by regions outside of the U.S. and Latin America, which now account for 35% of total paid users.
Furthermore, Spotify’s annual Spotify Wrapped campaign, offering users insights into their platform consumption, attracted over 225 million users.
In a bid to enhance user experience, Spotify announced in November that premium users in the U.S. would have 15 hours of monthly listening time across 200,000 titles.
Additionally, the platform partnered with TikTok, enabling users to save songs directly to the Spotify app from TikTok clips.
Despite registering a revenue of €3.7 billion ($3.97 billion) with a 16% year-on-year growth, Spotify reported an operating loss of €75 million, an improvement compared to the €231 million loss in the same period last year.
However, the company did generate €32 million in profits in Q3 2023. Furthermore, its advertising revenues reached a record high of €501 million, marking a 12% year-on-year growth.
In December, Spotify underwent a workforce reduction of 17%, or approximately 1,500 employees, aimed at enhancing productivity and efficiency.
Additionally, Spotify teased plans for EU-based users to purchase subscriptions and add-ons such as audiobooks directly on iPhones once the Digital Markets Act (DMA) becomes effective.
