Spotify’s revenues, subscriber count and net losses all shot up during its second quarter since arriving on Wall Street, the company announced today.
The Daniel Ek-led music streaming service said on Thursday that it ended June with 83 million premium subscribers, up 10 percent since last quarter, and 180 million monthly active users (MAU), up only 5.9 percent.
Total revenue for the quarter was €1.273 billion ($1.49 billion), an increase of 26.4 percent year-over-year and 12 percent compared to last quarter. Of that revenue tally, the vast majority (€1.15 billion) came from premium subscribers; ad-supported revenue totaled €123 million, an increase of 21 percent since Q1.
Spotify’s net losses came out to €394 million ($461.4 million), compared to €188 million in the corresponding period in 2017, and its operating loss was €90 million, a 14 percent jump compared to Q2 2017. The company said the loss included €30 million cash expense related to its direct listing on the NYSE in April.
During the quarter, the company generated €30 million in net cash flows from operating activities and had €18 million in free cash flow. It is reporting €1.7 billion in cash and cash equivalents, restricted cash, and short term investments.
In the third quarter, Spotify expects its total premium subscribers to increase to 85-88 million and it MAUs to between 188-193 million. The company doesn’t expect too big of a bump in total revenue either, projecting anywhere between €1.2-€1.4 billion for the quarter. Operating losses are expected to be between €10-€90 million.