Stockholm: Music streaming large Spotify on Tuesday reported a complete of 205 million paying subscribers on the finish of 2022, beating expectations, however its losses deepened.
The Swedish firm, which final week introduced it was reducing virtually six p.c of its workforce to cut back prices, posted a internet lack of 430 million euros ($465 million) for the yr in comparison with a lack of 34 million euros in 2021.
Analysts had forecast a lack of 441 million euros, in response to Factset.
Round 1230 GMT, shares in Spotify, which is predicated in Stockholm however listed in New York, had been up 5 p.c in pre-market buying and selling.
Income for the total yr additionally barely beat forecasts, coming in at 11.7 billion euros or an increase of 21 p.c from a yr earlier.
The variety of paying subscribers climbed by 14 p.c to 205 million, beating analysts´ expectations of 202 million, which the group attributed to sturdy development in all areas, particularly in Latin America.
It’s the first time Spotify has surpassed 200 million paying subscribers.
Spotify founder and chief government Daniel Ek mentioned the corporate had “delivered nice platform development.”
“We ended 2022 strongly regardless of a difficult yr,” Ek mentioned in a put up to Twitter.
Amongst different issues, the corporate additionally mentioned it had benefited from promotional campaigns, a powerful vacation season, and sturdy development amongst Gen Z customers.
The whole variety of month-to-month customers, together with subscribers utilizing the free model, totalled 489 million on the finish of the yr and will hit the five hundred million mark in 2023, Spotify mentioned.
The platform has solely often posted a quarterly revenue since its launch.
It has commonly posted annual losses, regardless of sturdy subscriber development and having had a head begin on its rivals comparable to Apple Music and Amazon Music.
Ek final week introduced the group was reducing round 600 jobs out of round 10,000, following related strikes by different tech trade giants.
Spotify has additionally invested a couple of billion euros into podcasting in recent times, however analysts say the corporate has but to show the funding is bearing fruit.
Its enterprise into podcasts has additionally been a supply of controversy, with US star Joe Rogan accused of spreading misinformation in his exhibits.
Doubts across the platform have additionally been mirrored in Spotify´s share worth, which has misplaced virtually two thirds of its worth over the previous two years. (AFP)