Spotify gained 155 million paid subscribers in Q4 but its revenue fell 8% to $5.13 per user.
“Monthly active users reached 345 million coming in at the very top of the range and we now have a 155 million subscribers, which surpassed all expectations,” said Daniel Ek, Spotify’s Chief Executive Officer, and Chairman.
Spotify’s users are up 27% from a year earlier for both paying and non-paying subscribers.
Ek said that the company had a strong Q2 and Q3, Q4 despite the economic downturn caused by the COVID-19 pandemic.
The rise in subscriptions was attributed to podcasts which Spotify plans to invest in.
Revenue from subscriptions rose 15% from the year before, to $2.27 billion while advertising rose 29% to $338 million.
Aside from subscriptions, Spotify’s annual gross margin was also very slightly up, from 25.5% in FY 2019 to 25.6% in FY 2020.
Despite the increases, Spotify’s operating loss for 2020 was $335m more than four times lost in 2019.
Spotify said that they forcasted an increase in both paying and non-paying subscribers and with 7.7%-18.5% higher revenue compared with Q1 a year ago.
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