The world's number one audio platform Spotify announced on Tuesday that it had exceeded 600 million monthly users by the end of 2023, and expects a profitable first quarter.
“Spotify had a very good quarter, capping a year of remarkable growth for the entire company
,” wrote its CEO Daniel Ek on increase of 23% over one year, according to its annual report.
Spotify also saw the number of its paying subscribers, which represent the bulk of its revenue, increase by 15%, to 236 million subscribers.
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Over the entire year, the Swedish flagship reported a 13% jump in turnover, to 13.2 billion euros, compared to 11.7 billion euros the previous year.
It still recorded an operating loss of 446 million euros over this same period, an improvement compared to the 659 million losses in 2022. Since its creation 18 years ago, the platform has not never posted a net profit over an entire year and only occasionally makes quarterly profits, despite its success in the online music market.
To reduce its costs, Spotify announced at the beginning of December a third wave of reduction of its workforce, up to 17%, or around 1,500 people. According to Daniel Ek, the group
“has too many people in support functions (...) rather than contributing to opportunities with real impact
. ”
The company, which is listed on the New York Stock Exchange, has continued to invest since its launch in 2006, first to fuel its growth by establishing itself in new markets and then by offering exclusive content, such as as podcasts, in which it has invested more than a billion dollars.
For the first quarter of 2024, it intends to reach 618 million monthly users and expects an operating profit of 180 million euros.