Spotify Hits 299 Million Active Users in Q2, Net Loss Balloons on Stock-Related Costs

’s subscriber growth came in at the top end of expectations, but the company’s bottom line was hit by a 48% increase in operating costs related to stock-related compensation charges. In addition, ad revenue fell 21% — which Spotify blamed on the coronavirus pandemic — but the drop wasn’t quite as bad as forecast.

According to Spotify, after a “modest” drop in consumption hours driven by COVID in Q1, as of June 30 “global consumption hours have recovered to pre-COVID levels.” At this point, all regions worldwide including North America and Europe have “fully recovered” — with the exception of Latin America, which is about 6% below peak levels prior to the global health crisis, the company said.

But even with tailwinds driving up its user base, Spotify’s financial results — ironically — were hurt because ofin the period. Total revenue for Q2 of €1.89 billion was up 13% year over year, in line with expectations, while Spotify’s net loss ballooned to €356 million .

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