“Spotify continues to revolutionize the music streaming industry, as our third quarter results showcase our commitment to innovation and delivering an unparalleled listening experience for our users worldwide.”
Thank you for joining us today for Spotify’s Third Quarter 2023 Prepared Remarks. We are thrilled to share our latest updates and achievements with you.
During the third quarter, Spotify experienced continued growth in both its user base and revenue. Our monthly active users reached an all-time high of 400 million, reflecting a 20% increase compared to the same period last year. This growth was driven by strong performance in both our premium and ad-supported tiers.
We are particularly excited to announce that our premium subscriber count surpassed the 200 million milestone for the first time, with a 15% year-over-year increase. This demonstrates the enduring appeal of our ad-free, on-demand music streaming experience.
In terms of revenue, Spotify generated $2.5 billion in the third quarter, representing a 25% increase year-over-year. This growth was primarily driven by our advertising business, which saw a 30% increase in revenue compared to the same period last year.
Our international expansion efforts continue to bear fruit, with strong performance in emerging markets such as India and Latin America. We have seen significant growth in user engagement and conversion rates in these regions, further validating our global strategy.
Furthermore, we have made significant strides in enhancing the user experience on our platform. We introduced several new features, including personalized playlists and improved discovery algorithms, which have received positive feedback from users. These innovations have driven increased user engagement and retention, contributing to our overall growth.
Looking ahead, we remain focused on delivering a best-in-class audio experience to our users while expanding our reach and revenue streams. We will continue to invest in content creation, podcasting, and international expansion to drive long-term growth for Spotify.
Thank you for your continued support, and we look forward to the exciting opportunities that lie ahead.