Spotify added extra customers than anticipated on the finish of final 12 months as individuals caught at house because of the coronavirus pandemic tuned in to streaming music and podcasts like “The Joe Rogan Experience,” the corporate mentioned on Wednesday.
Regardless of the uptick, buyers despatched shares of the Swedish streamer down 9 p.c after Chief Government Officer Daniel Ek predicted a slower begin to 2021.
For the quarter that led to December, Spotify logged 345 million whole month-to-month customers, topping the excessive finish of its steering and marking a 27 p.c rise from the year-ago interval. Subscribers who pay for the service with out promoting, grew 155 million, up 24 p.c from a 12 months earlier. Spotify mentioned it added a file 30 million signal ups for 2020.
The uptick helped drive quarterly income 17 p.c to $2.6 billion. The corporate posted a internet lack of $150 million.
Wall Avenue has been critical of Spotify’s massive podcast push within the final 12 months, however Ek touted the corporate’s 2.2 million podcasts as central to the fourth-quarter progress. And he gave a shout out to exclusive podcasts, such as “The Joe Rogan Experience,” as key to driving a “significant uptick in viewers.”
Rogan’s present was the highest podcast on the platform in 17 markets, mentioned Ek mentioned, who additionally cited curiosity within the firm’s multi-year cope with Meghan Markle and Prince Harry to host and produce podcasts for Spotify, which resulted in a vacation particular episode in December.
Different US launches have included “Dare to Lead with Brene Brown,” “10 Songs that Made Me,” “The Ringer Music Present,” and “The Get Up Morning Present.”
Regardless of the robust subscriber progress, Ek mentioned he remained cautious going into 2021 because the pandemic will proceed to carry “extra uncertainty than any regular 12 months.”
Because of this the corporate predicted minimal subscriber progress, which knocked the inventory down almost 9 p.c in early buying and selling. Spotify predicted whole subscribers of between 354 million and 364 million within the first quarter, whereas paying subscribers are anticipated to succeed in between 155 million to 158 million.