Spotify reported mixed results for the second quarter of 2024, with revenue almost meeting analyst expectations but falling short of its own user growth target.
The Swedish audio streaming giant saw revenue rise to €3.81 billion, slightly below analyst estimates of €3.82 billion. Profit grew steadily to €1.11 billion, exceeding analyst expectations for €1.07 billion. Spotify’s gross profit margin also widened to 29.2% from 27.6% in the previous quarter.
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However, Spotify failed to reach its target of 631 million monthly active users (MAUs), attracting only 626 million for the quarter. The company attributed this shortfall to “continued recalibration” of its marketing activities.
Despite the missed user growth target, Spotify’s strong revenue and profitability suggest that its cost-cutting measures are working. However, the company’s ability to balance user acquisition with cost management will be crucial in future quarters.