According to the annual report, Spotify had a strong quarter and a remarkable year of overall growth, with the number of monthly active users reaching 602 million, a 23% increase from the previous year. The company also saw a 15% increase in its paid subscribers, totaling 236 million.
Over the year, Spotify’s revenue jumped by 13% to 13.2 billion euros, compared to 11.7 billion euros the previous year. However, the company still experienced an operating loss of 446 million euros for the same period, an improvement from the 659 million euro loss in 2022.
In an effort to reduce costs, Spotify announced a third wave of workforce reduction in early December, cutting 17%, or about 1,500 employees. The company’s CEO, Daniel Ek, mentioned that there were “too many people in support functions (…) rather than contributing to real impact opportunities.”
Since its launch in 2006, the company, listed on the New York Stock Exchange, has continuously invested in expanding to new markets and offering exclusive content, such as podcasts, for which it has invested over a billion dollars. Looking ahead to the first quarter of 2024, Spotify aims to reach 618 million monthly users and anticipates an operating profit of 180 million euros.