Thursday, July 26, 2018

9 Big Takeaways From Spotify's Q2 Earnings Call | hypebot

Spotify newToday's Q2 2018 earnings call was, as CEO Daniel Ek promised they would be, filled with information both for investors and the rest of us. Here are 9 big takeaways:

  • Users are continuing to flock to the streamer - Spotify ended June with 180 million monthly active users, including 83 million paid subscribers. That's up 30.4% and 40.7% respectively over the same quarter 2017.
  • Losses continue despite revenue growth - Spotify generated revenues of $1.5B USD in Q2, up 26.4% year-on-year.  But the net loss was$461.4M compared to a net loss of $220M for the same quarter last year.
  • Spotify For Artists is a hit - 200,000 artists now use the marketing and analytics platform monthly.  CEO Daniel Ek also repeated his promise to build an ecosystem that enables "1 million creators to make a living off the platform."
  • Spotify's Family and Student plans are driving growth alongside bundles with Hulu and others.
  • What churn rate?  Ek debunked a report of 16% churn rates with a claim of 4% and falling in the US.
  • Don't expect price increases any time soon, despite a current experiment in Scandinavia.  
  • Revenue growth will come from nore paid subscribers and advertising, not from paying less to creators and labels.
  • No Exclusives - expect in podcasts.
  • No Push Into Video - "We're an audio first platform," reminded EK.



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