With two recent acquisitions, Spotify is poised to attempt and become a podcasting powerhouse, and we have some suggestions for them. Streaming music is a critical part of the company’s overall strategy, but first things first. For the first time in its history, the company has declared a profit.
Spotify has finally made a profit after 13 years and 96 million paying subscribers. Unless you consider the one time it was supposedly thrown into the dark because of a complicated tax scenario.
“For the first time in the company’s history, Net Income, Operating Income, and Free Cash Flow were all optimistic,” says a portion of Spotify’s financial disclosure. A working profit of €94 million, or over $107 million, was made by the company.
In light of the fact that Spotify may or may not be the market leader in this space, this may be a useful indicator for the whole industry. That 96 million paying subscribers is almost twice as many people as Apple Music has, and Spotify reported 207 million monthly active customers in the last quarter of this year.
Earlier this year, Spotify claimed to have uncovered 2 million people using its free services without subscribing to its paid plans who were blocking adverts. This brought to light a potential threat to the company’s financial well-being. After filing an amended share brochure, the Swedish company stated that it is still the target of third-party operations aiming at gaining access to its premium product without authorization.
Two million consumers were previously included in calculations for a number of key performance indicators, including ad-supported users, MAUs and content hours for each MAU. As a result, Spotify claims that certain metrics in its brochure may be “overstated” since it now lacks the information necessary to govern previously supplied significant performance indicators.