Spotify recorded some losses sales of 430 million euros in 2022. The Swedish distribution platform for music Y podcasts to the letter Has published this Tuesday its results for the fourth quarter of last year and the figures suggest that, once again, its business is in the red. Still, its revenue and the number of paying users continues to grow. “We finished 2022 strong despite a challenging year,” said his CEO, daniel ek.
During the last three months of 2022, Spotify registered losses of 270 million. These losses are due to the increase in personnel costs due to the growth of its workforce and the increase in advertising costs. To limit those costs, the giant of ‘streaming‘ announced last week the dismissal of about 600 employees, equivalent to 6% of its team. “I was too ambitious to invest ahead of our revenue growth,” Ek confessed then.
However, not all bad news. Spotify already has 205 million users who pay to use an improved version of its services, 14% more than the previous year. Thus, it becomes the first streaming music platform to exceed that number of subscribers. Those good signs have seen Spotify shares grow 3%.
Q4 ’22 $SPOT delivered great platform growth. We ended 2022 strongly despite a challenging year. Expect us to move faster with more intensity of effort, driving even greater efficiency in 2023. pic.twitter.com/rII7hHwRy1
—Daniel Ek (@eldsjal) January 31, 2023
The company also closed 2022 firing its income up to 3,170 million euros. In both cases, analysts’ growth expectations were exceeded. Even so, the costs associated with income have also skyrocketed, that is, the payment to artists Y record labels for the Copyright of the music it distributes.
500 million users
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Spotify ended 2022 with 489 million users assets per month, which adds both those who pay and those who use their service with advertising. The company estimates that, during the first quarter of 2023, it will exceed 500 million users and also anticipates an increase in subscribers premium up to 207 million.
This mixed picture highlights the difficulties of Spotify’s business. Since its founding in 2006, 17 years ago, the company has never made an annual profit. The last year has been affected by the economic turmoil that has hit the technology sector and its shares have plummeted almost 50%.