Spotify Lifts Q2 Global Users 22% to 365 Million — Below Company Projections

Music streaming service Spotify July 28 disclosed it generated 365 million total global monthly users in the second quarter, ended June 30. That compared with 299 million MAUs in the previous-year period.

The user growth fell below company projections despite adding 9 million MAUs from the first quarter.

“COVID-19 continued to weigh on our performance in several markets, and, in some instances, we paused marketing campaigns due to the severity of the pandemic,” Daniel Ek, founder/CEO, and Paul Vogel, chief financial officer, wrote in the shareholder letter.

The said a user sign-up issue associated with a global third party platform created “unexpected intake friction,” which also impacted MAU growth.

“This issue has since been resolved,” they wrote.

Olivia Rodrigo’s album SOUR set the record for biggest streaming debut for any album on Spotify this year, with more than 63 million global first-day streams.

Revenue topped $2.7 billion, up 19.5% from $2.3 billion in the previous-year period. Net loss narrowed to $23.6 million compared with a net loss of $420 million a year ago.

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