Spotify recorded one of the best fourth-quarter performances in its history despite laying off 17 per cent of its workforce and a price hike last year. The company’s premium subscriber count grew 15 percent year over year bringing its total paid subscribers to 236 million. Monthly active subscribers grew 23 per cent year over year to 602 million, while the company enjoyed a 16 per cent year-over-year total revenue growth to €3.7 billion.
Thanks to the 2023 Q4 results, Spotify says it is “well positioned to deliver improving growth and profitability.” In July 2023, the company announced a price hike to its premium services, pushing the $9.99 single plan to $10.99 monthly. As part of its cost-cutting measures, the company announced it was reducing its total headcount by around 17 per cent in December.
Despite having a strong further quarter performance, the company recorded €75 million in operating loss, and it reflected €143 million in net severance related and real estate optimisation charges, out of which €139 million were included in the operating expenses.
The company says its 9th annual Wrapped Campaign drew in more than 225 million monthly active users, while its engagement grew 40 per cent year over year in the fourth quarter.