Spotify Technology S.A. (SPOT) reported a robust fourth quarter for 2023, with a 23% year-over-year increase in Monthly Active Users reaching 602 million and a total revenue growth of 16% to €3.7 billion.

Spotify Technology S.A. has revealed its performance for the fourth quarter of 2023, showcasing robust financial health and solid growth across key performance indicators (KPIs), setting a positive tone for the future.

Spotify Subscribers Up 15% Year-Over-Year

In the fourth quarter of 2023, Spotify reported impressive growth, with all KPIs meeting or exceeding the guidance provided. The period saw a remarkable 23% year-over-year increase in Monthly Active Users (MAUs), reaching 602 million, which was 1 million ahead of the company’s guidance. This growth in MAUs represents the second-largest net addition in Spotify’s history for a fourth quarter.

Similarly, subscriber numbers saw a 15% increase year-over-year, reaching 236 million, with net additions also exceeding guidance by 1 million. Total revenue for the quarter grew by 16% year-over-year to €3.7 billion, with a gross margin of 26.7%. Despite an operating loss of €75 million, the adjusted Operating Profit stood at €68 million, signaling a robust move towards sustainable growth and profitability.

SPOT Outperforms Expectations in Q4

Comparing Spotify’s fourth-quarter performance against market expectations, it’s clear that the company has outperformed in several areas. Analysts had anticipated an EPS of -$0.37 and revenue of $3.72 billion for the quarter. While Spotify’s revenue closely aligned with expectations at €3.7 billion, the company’s reported EPS of -$0.36 was slightly better than expectations.

However, the exceedance in MAU and subscriber net additions further solidifies Spotify’s market position and appeal among users, surpassing the forecast and setting a positive precedent for the company’s growth trajectory.

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