Spotify saw a surge in users, advertising revenue in 2021, but stocks exceeded weak growth forecasts


Spotify confirmed a surge in user and advertising revenue in the fourth quarter of 2021. The company said Wednesday that it was driven by the performance of a strong promotional campaign.

For the fourth quarter, Spotify reported:pdf) The number of monthly active users is 406 million, an increase of 18% from the previous year, reaching the upper limit of the company’s guidance range.

Premium subscribers, or paid subscribers, increased 16% year-on-year to 180 million in the fourth quarter. The company says this was driven by “the performance of a strong promotional campaign.”

Revenues from subscriptions increased 22% to € 2,295 million (about $ 2.6 billion), while Ad-Supported revenues increased 40% to € 394 million ($ 445 million). Advertising support revenue reached a record 15% of total revenue during the quarter, the company said.

Spotify also said there are 3.6 million podcasts available for the service, up from 3.2 million last quarter.

For the entire quarter ending December 31, sales were up 24% to € 2,689 million ($ 3 billion), exceeding the company’s expectations.

“2021 was driven by MAU’s outperformance and performed well in the fourth quarter. [monthly active users]The ongoing momentum of the subscription business, and meaningful advertising results, “read the note to shareholders.

“Looking back over the past few years, not just this quarter, we’re getting more and more excited about the investments we’ve made, and we’re seeing significant progress in many of our initiatives. As we move beyond 2022. The opportunity in front of us is great, and we see a tremendous amount of greenfields on the horizon, “says the memo.

However, Spotify shares fell on Wednesday after the company reported weak guidance on monthly active users in the first quarter of 2022.

The company’s stock fell 18% in the second half of the transaction, missing an estimate of 422 million, after the monthly active users were projected to be 418 million in the next quarter.

Sweden’s streaming service also forecasts gross margin to drop from 26.5% to 25% in the first quarter of 2022, bringing total revenue to € 2.60 billion ($ 2.94 billion).

After Spotify agreed to remove Neil Young’s music when the singer disseminated false information about the coronavirus vaccine and accused Joe Rogan, 54, of “potentially causing death.” , Has recently become the center of controversy.

Logan later addressed Young’s claim in a long Instagram video, sharing his previous podcast guests, including Dr. Peter McCullough and Dr. Robert Malone, with a different opinion than COVID-19, “very qualified. , Very intelligent and highly accomplished people. ” “Mainstream story”.

“These podcasts are just conversations, so it’s very weird,” Rogan said. “And I often don’t know what to talk about until I sit down and talk to people. So I have literally real-time ideas, so I have some ideas that aren’t very prepared or embodied, but I’ll do my best to talk. Just being there, I think that’s what makes the show so appealing. That’s one of the things that makes it interesting. “

“They are very sorry from Spotify,” Rogan told Spotify, “I’m very sorry that this is happening,” and vowed to take in the opinions of various experts and balance the show. It’s taking a lot of heat. “

Later, Spotify announced the addition of content advisories to podcast episodes to counter the so-called false information about COVID-19.

The company’s CEO, Daniel Ek, said Logan controversy with investors On Wednesday, however, he said it was “premature to know” how it would affect the company.

“Generally speaking, it’s too early to know what the impact is, and usually when there is a dispute in the past, they are measured in months instead of days,” Ek says. I did. “We feel good about where we are in relation to it, and obviously the top line trends still look very healthy.”

“Therefore, the important thing here is not to change the policy based on one author, or based on the media cycle or calls from others. Our policy is this. Carefully crafted with feedback from many internal and external experts in the field, and I believe they are suitable for our platform, and Joe [Rogan] With a large audience, it’s actually the # 1 podcast in over 90 markets, and we have to follow these policies, “he added.

Catabella Roberts

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Katabella Roberts is a reporter currently based in Turkey. She focuses primarily on the United States and covers the news and business of The Epoch Times.