Spotify, one of the world’s leading music streaming platforms, has reached the milestone of 195 million paid subscribers to the platform’s subscription service.. Although subscriptions increased quarter-on-quarter, the company was unable to return positive numbers to storage. As a result, the company posted a million-dollar loss with a lower-than-expected profit.

Reports released by Spotify note that the months of July to September were positive compared to the previous quarter. This is because the platform managed to increase the number of subscribers by 7 million, which represents an increase of approximately 13% compared to the last figure provided by the company.. In terms of monthly active users, they saw even more growth, reaching 20% ​​and ending the quarter with 456 million users.

Before the start of the quarter, Spotify made a prediction that the app would be able to reach 450 million users, both subscribers and non-subscribers. However, they managed to finish with a higher margin. According to the company’s report, Between July and September alone, the platform managed to attract the attention of 23 million different people listening to the content presented in the application..

Of this group of new users of the platform, only 4% became users who subscribed to the application in order to take advantage of all the benefits offered. Despite the low conversion rate, Spotify has reason to rejoice, given the closeness of hitting 200 million subscribers by the end of the year. With 195 million at the moment, everything indicates that the efforts of the person responsible for the application will reach the goal without any problems.

Spotify lost over 1 billion BRL

Amid so much good news, Spotify suffered a million-dollar loss and ended up with less than expected profit. They ended the quarter with an operating loss of 228 million euros, according to documents released by the company. The cost is about 1.2 billion reais at the current price. However, it is important to remember that many companies make investments that directly affect the treasury in order to reap the rewards in the long run.

This directly affected the profitability, which amounted to 24.7%. That figure is lower than those in charge of Spotify expected, who ended up seeing Wall Street stock close over 6% on the afternoon. That is, even the good news about the growth in the number of subscribers could not hold the price of the shares of the application – this, according to them, is all due to “an unfavorable adjustment for the right holders of estimates of the previous period.”

Spotify may launch a more expensive plan with HD audio
A platinum subscription should cost around $19.99.

Source: Spotify

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