Spotify reported its most profitable quarter ever on Tuesday, outpacing analysts’ second-quarter expectations and proving to investors that the company’s recent cost-cutting measures are producing positive growth. In Q2 of 2024, the number of paying Spotify subscribers rose to 246 million, while profits jumped 45 percent from the same time last year to a total of $1.21 billion.
This marks the second consecutive quarter of record growth for the music-streaming giant, which followed on the heels of heavy losses last year. After high overhead costs and expensive investments in podcasting ate into Spotify’s bottom line in 2023, the company implemented a 17 percent staffing reduction at the end of the year and completely overhauled its approach to podcast distribution.
Learn more about the 2024 Vault Conference and secure your ticket today!
Spotify now projects solid profitability for the foreseeable future, estimating a 30 percent gross margin by Q3.
“It really comes down to the number of subscription offerings we have now. We’re moving from one-size-fits-all to having something for everyone,” CEO Daniel Ek told Reuters.
Connor Walcott is a staff writer for Valuetainment.com. Follow Connor on X and look for him on VT’s “The Unusual Suspects.”
Got a hot scoop or an idea for a story? Connect with the VT writers on Minnect!
Add comment