Spotify In Podcast Mode, Adds Users Fast But Sales Light In Latest Earnings

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Spotify said it continues to see “exponential growth” in podcast hours streamed as it announced another acquisition in podcast and reported fourth quarter earnings where monthly active …

The giant streamer said it ended 2019 with 124 million premium subscribers globally, up 29% from the year earlier and up 10% from the previous quarter. It was the highest net-add quarter ever, Spotify said. Ad-supported monthly users stood at 153 million, up 32% on the year and 9% on the quarter.

Revenue rose to 1.86 billion euros , up 24% from $1.5 billion euros a year earlier. Analysts were expecting revenue of 1.89 billion euros, Spotify forecast current first-quarter revenue will come in from 1.71 to 1.91 billion euros, largely below estimates.Ad-supported revenue of 217 million euros was up 23%, a bit weaker than anticipated, the company said.

Podcasting was a big theme. Spotify said streaming hours rose 200% in the fourth quarter from the year before and that it’s seeing “clear indications that podcast usage is driving increased overall engagement and retention. We have seen early indications that our investments inSpotify said overall growth re-accelerated across its largest regions, Europe, North America, and Latin America, although the ‘rest of world’ segment is still the fastest growing.

 

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