Spotify hits a record 751M monthly users thanks to Wrapped, new free features

Source: TechCrunch

User Growth

Spotify reported a record 38 million new users in the fourth quarter, bringing its total to 751 million monthly active users, up 11 % year‑over‑year. Paying subscribers grew 10 % to 290 million. The “Wrapped” campaign engaged more than 300 million users and generated 630 million social media shares in 56 languages.

Financial Performance

• Revenue: €4.53 billion ($5.39 billion), a 7 % increase YoY.
• Subscription revenue: Up 8 % year‑over‑year.
• Ad‑supported revenue: Fell 4 % to €518 million ($616.6 million).
• Gross margin: Rose 83 basis points to a record 33.1 %, driven by higher ad sales for podcasts and music.

Leadership Changes

The company’s new co‑CEOs, Gustav Söderström and Alex Norström, have taken over from co‑founder Daniel Ek and will now steer a business that has expanded far beyond its original music‑streaming focus.

Product and Service Expansion

• Content diversification: Podcasts, audiobooks, and even physical bookstores.
• Video offerings: Music videos and video podcasts within the app.
• Social features: Group chats, real‑time listening sharing, concert ticket booking, and song‑story exploration.
• Free‑tier enhancements: Search and play specific tracks to attract users from competitors such as YouTube Music and Amazon Music.

AI‑Powered Features

• AI DJ – voice‑controlled personalization.
• AI‑generated playlists – prompted playlists available in the U.S. and Canada.
• Track exclusion – users can block tracks from their taste profile to improve recommendations.

Outlook

Spotify projects 759 million users and 293 million paying subscribers for the current quarter.