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Spotify beat growth expectations despite controversy

spotify, the music platform streaming recorded a increase in the number of Premium subscribers, Monthly Unique Users (MAU), revenue, gross margin and podcastdespite the fact that in recent months there has been wrapped in various controversies and even several artists came out of his playback library.

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Through the results report for the first quarter of the year, the platform assured that their premium subscribers grew by 15%up to 182 million in the quarter, compared to 180 million last quarter.

Remember that these numbers are despite the fact that in early March Spotify left Russia (in response to the invasion of Ukraine), which caused a loss of 1.5 million connections in that market. Even with that, exceeded expectations and was helped by growth in Latin America and Europe.

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Regarding the MAU, reported an increase in 19% year-on-year to 422 million in the quarter, including a benefit of approximately 3 million unique users. Excluding profit, MAU was 419 million in the quarter, that is, about a million higher than expected. It was all due to the outperformance of Latin America and the rest of the world, led by Indonesia, Brazil and Mexico.

So lucky, platform revenue grew 24% year-over-year to US$2.977 billion (or 19% year-over-year at constant exchange rates), achieving the highest first quarter to date in ad-supported revenue (11% of total revenue). On the other hand, the Gross margin finished slightly above guidance at 25.2 percent.

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With respect to Average Income per User (ARPU) reported an increase of 6% year-on-year in reported terms and 3% in constant currency to $4.90.

In relation to the podcast, Spotify said that at the end of the first quarter there were 4 million podcasts (up from 3.6 million at the end of the fourth quarter of 2021). “The growth in the number of MAUs that interacted with podcast content continued to outpace overall growth From MAU, podcast consumption rates grew by double digits Y/Y, and podcasts’ share of total consumption hours on our platform hit another all-time high.

“We saw a double-digit year-over-year increase in new podcasts in key growth markets in Latin America and the rest of the world, with more than 85% of new podcast creation on our Anchor platform”

That is, despite his departure from Russia, as well as the controversies over artists who left his library due to Joe Rogan’s comments about COVID-19 vaccines, the pandemic and even the color of some people’s skin, globally had a 19% annual increase in monthly unique usersof which Latin America was a key point.

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The numbers have surprised everyone, because when the platform was in the midst of the controversy of the podcaster, announced a $44.1 million loss and projected its first-quarter 2022 profit margin to fall to 25% from 26.5% situation that did not occur. Against all odds it has been one of the best growth ever reported by Spotify.

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