Business

Spotify 2021 first-quarter results: number of Premium subscriptions above expectations in Latin America

The platform's total number of monthly active users (MAUs) grew 24% Y/Y to 356 million in the quarter, modestly below the company's internal goals

LABS

28.Apr.2021 14:00 BRT
UPDATED 14:24 BRT

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Only in Q1, Spotify added 11 million monthly active users (MAUs).
The number of Premium Subscribers grew 21% Y/Y to 158 million in the quarter – 4 million subscribers were added between January and March 2021.

The audio streaming platform Spotify disclosed its results for the first fiscal quarter of 2021 this Wednesday. Revenue grew by 16% (22% excluding the impact of foreign exchange), to EUR 2,15 billion, and, according to the company, “was at the upper end of our guidance range.” Although highlighting the results “within our guidance range for the quarter ended on March 31”, Spotify said that the growth was lower than planned in Latin America and Europe.

Other highlights from the quarter include a successful launch in 86 new markets, a $1.5 billion Exchangeable Notes offering, and the acquisition of Betty Labs (Locker Room).

The platform’s total number of monthly active users (MAUs) grew 24% Y/Y to 356 million in the quarter, modestly below the company’s internal expectations. Only in Q1, 11 million MAUs were added.

“We saw meaningful contributions from markets such as the U.S., Mexico, Russia, and India. However, growth was lower than planned in Latin America and Europe. In aggregate, the performance of our newly launched markets was in line with our expectations,” Spotify wrote to its shareholders.

The number of Premium Subscribers grew 21% Y/Y to 158 million in the quarter – 4 million subscribers were added between January and March 2021.

“The subscriber outperformance was fairly broad-based and led by North America, where we saw stronger than expected performance of Trials & Campaigns and faster than anticipated growth in our Standard product. In Latin America, we saw outperformance driven by the continued success of our Family Plan product. We are pleased with the new market contributions, with South Korea being the biggest driver,” said the company. Spotify does not distribute its MAUs number by region in its reports.

For 2021 as a whole the company has “modestly lowered” its total MAUs range for the full year, to 402-422 million. Spotify sees the possibility of reaching total revenue of EUR 9.11 bln to EURO 9.51 bln by the end of this year.