Spotify’s Strong Growth of 299 Million Users
Spotify disclosed its financial report for the second quarter of 2020, and found that the song broadcasting platform succeeded in raising the number of its active users per month to 299 million, which represents an increase of 29 percent compared to the same period last year, and an increase of 5 in One hundredth compared to the first quarter of this year.
Moreover, Spotify’s revenue increased from its paid plan subscribers, while a decrease in free cash flow was observed, mainly due to “the continuing uncertainty surrounding the COVID-19 epidemic.” Besides, growth in North America exceeded expectations, as the number of users and company revenue increased compared to 2019.
India is also a market where Spotify has exceeded expectations, mainly because of “strong performance from marketing campaigns in the region”. Latin America and the rest of the world are experiencing the fastest growth, the growth rate in Latin America has reached 33 percent, while in the rest of the world it has reached about 58 percent.
While April and May saw slower-than-expected growth in the last two regions, they rebounded in June as activations increased. Expectations were high for Latin America and the rest of the world, but success in North America helped offset the result.
Spotify revealed that, as of June 30, the average number of hours spent globally on consumers has returned to pre-COVID-19 levels. All regions are fully recovered, and Asia Pacific and the European Union led the change as these are the first markets where the spread of the virus appears to be slowing down. In-car service listening decreased at the end of the second quarter by 10 percent compared to before COVID-19.
Spotify's Strong Growth in 299 Million Users - /10
Spotify's Strong Growth in Subscribers of 299 Million Users