Solid Subscriber Growth: Spotify reported a net addition of 5 million subscribers in Q1 2025, bringing the total to 268 million, marking a 12% year-on-year increase. This is the highest Q1 subscriber net add since 2020, with emerging markets like Latin America and Asia contributing significantly (two-thirds of the growth). The company anticipates continuing this growth trajectory, projecting to reach 273 million subscribers in Q2 2025.
Revenue Performance and Forecasts: Total revenue for Q1 2025 reached $4.2 billion, reflecting a 15% year-on-year growth (constant currency basis). For Q2 2025, the outlook predicts a revenue increase to $4.3 billion amidst a $100 million headwind from currency movements. The company maintains a long-term revenue growth target of 20% per year, despite acknowledging that achieving this in 2025 may be challenging.
Advertising Business Gains: Spotify's advertising segment grew by 5% year-on-year on a currency-neutral basis. The company has reported an increase in active advertisers and a growing demand for programmatic advertising due to improved tools for advertisers. However, there are concerns regarding pricing softness in the advertising market.