Spotify confirmed on Tuesday that it now has 195 million paid subscribers on the platform. It is an increase of 7 million paid subscribers since the last quarter. This was positive news for the company as it beat its earnings guidance by a million. The company expects to cross the 200 million paid subscribers mark by the end of 2022.
Total monthly active users also grew by 20% to reach 456 million. It was 6 million above Spotify’s prior guidance and a net addition of 23 million. It also represents Spotify’s largest Q3 growth to date.
Even if the company shared positive news, it didn’t make shareholders much happy. Spotify stocks went down more than 6 percent in after-hours trading.
“There is a lot of global uncertainty, but our business continues to perform very nicely around the world,” CEO Daniel Ek said in prepared remarks about the quarter. “With one quarter left in a year that has seen war, a lingering pandemic, inflation, supply chain disruption and threats of a global recession, I am really proud of all that we have accomplished and that despite all of this, we are precisely where we thought we’d be.”
The company also confirmed that it now has 4.7 million podcasts on the platform, up from 4.4 million in the previous quarter. The company has been investing in podcasts a lot and expects be make this segment profitable in the next two years.
