Spotify posted its earnings for Q2 2020, revealing that the streaming service now has 299 million monthly active users (MAUs), a 29% increase year-over-year (YoY). During the last quarter, it added 8 million paid subscribers, which means 138 million are paying for Premium, while the rest are using the ad-supported version of the platform. The report exceeded analysts' expectations, who expected the firm to have 136.4 million paid subscribers, according to IBES data from Refinitiv (via Reuters).
Spotify's total revenue increased by 13% YoY to €1,889 million during the last quarter. Despite an increase in paid subscribers, it had an operational loss of €167 million. Revenue generated from ads fell 21% YoY due to COVID-19, which was slightly above the firm's expectations. The firm noted:
"The quarter started off particularly slow but improved steadily with momentum in June overcoming the weakness early on."
The report reveals that some people have started to go back to living their normal lives after coronavirus-related lockdowns were relaxed. As of June 30, global consumption hours are back at normal levels, and "in-car listening" stats have recovered to just 10 percent less than what they were before lockdowns began.
Spotify noted that 21% of its users now engage with podcast content, up from 19% in Q1 2020, which means the firm's interest in podcasts is paying off. The number "continues to grow at triple-digit rates year over year," and the firm expects the trend to continue, which can be attributed to Joe Rogan signing an exclusive deal, though his podcasts will be made available on the platform September 1 onwards.