Market optimism is growing in the newly-leaner Spotify, which unveiled its Q4 2023 financials on Tuesday. Following a year marked by layoffs, royalty reworking, and podcasting troubles, the company finished far ahead of analyst expectations.
The earnings call marked CFO Paul Vogel’s likely last with the company, as he plans a March exit.
While Spotify’s Q4 ended on a €75 million operating loss, revenue saw a 16% year-on-year increase, reaching €3.7 billion. CEO Daniel Ek highlighted a 23% year-over-year increase in Monthly Active Users, reaching 602 million, surpassing guidance by 1 million. This growth contributed to the second-largest Q4 net addition in the company’s history, with 28 million new users.
Subscriber numbers also rose by 15% year-over-year to 236 million, with Q4 additions totaling 10 million, leading to a record annual net addition of 31 million subscribers. A portion of this was attributed to the app’s recent audiobook expansion, offering 15 hours per month to premium subscribers.
As for whether more layoffs or content cuts could be possible within the year, Ek commented further “efficiencies” may be considered throughout 2024 as long-term growth is considered.
Spotify stock rose on the Q4 news, buoyed by the recent contract extension with mega-podcaster Joe Rogan, valued at $250 million.
