Like most tech companies, Spotify also has some issues. In the last quarter, the operating loss of the music service reached about $250 million, which is in line with the forecast of more than $300 million. But the company has always prioritized growth over profit. And here there are significant successes.
So, as of December 31, the service gained 205 million subscribers, which is 14% more than last year’s figures. The number of monthly users increased by 20% or 489 million in total. At the same time, the average revenue from subscribers is approximately $4.93, which is 3% more than last year, but also less than the previous quarter ($5.01).
Q4 ‘22 $SPOT delivered great platform growth. We ended 2022 strongly despite a challenging year. Expect us to move faster with more intensity of effort, driving even greater efficiency in 2023. pic.twitter.com/rII7hHwRy1
— Daniel Ek (@eldsjal) January 31, 2023
A week earlier, the company also announced laying off 6% of workers, restructuring and trying to cut costs amid a worsening economic situation.
The progress report to investors did not reveal details about the launch of Spotify HiFi, which was announced two years ago and users have already come across mention of it. Meanwhile, some competitors like Apple Music and Amazon Music already offer tracks without loss of quality at no additional cost.