Spotify today reported subscriber growth at the top end of its targets for the first quarter as strong momentum from a pandemic-induced boom in trading continued into 2021.
The music streaming giant posted 21 per cent year on year growth in premium subscribers to 158m after it added 4m in the first three months of the year, which was at the top end of its guidance.
Total monthly active users grew 24 per cent to 356m in the quarter, which was within its guidance range but below internal expectations.
The Swedish company posted revenue of €2.1bn (£1.8bn) in the quarter, up 16 per cent on the previous year. It booked a small profit of €14m, up from a €17m loss last year.
The figures show Spotify has remained resilient even as lockdown restrictions begin to ease and competition from rivals such as Apple and Amazon continues to heat up.
The streamer this week announced the launch of a paid subscription service for podcasts after Apple unveiled plans for a similar venture just a week ago.
Spotify today credited podcasts — a major growth area for the firm — with much of its success in the first quarter.
The company, which now has more than 2.6m podcasts, said The Joe Rogan Experience had performed ahead of expectations.
Spotify, which launched its services in 86 new countries in the first quarter, said growth in the US, Mexico, Russia, and India offset lower-than-expected growth in Latin America and Europe.
While the figures came in at the top end of Spotify’s forecasts, they still represent a slowdown from the bumper growth reported at the height of the pandemic last year.
The music company also warned of a further easing of growth in the coming quarter as restrictions continue to ease and flagged “substantial uncertainty” around its forecasts.
Spotify said it expected premium subscribers to hit between 162m and 166m in the second quarter, below analyst estimates of 166.1m compiled by Refinitiv.
Revenue is set to come in between €2.16bn €2.36bn, the company said.