Spotify released its first quarter earnings results for 2020 on Wednesday (April 29), and records show the streaming service has added 6 million premium subscribers in the first quarter of 2020, for a total of 130 million subscribers, a 31% year-over-year increase. According to Spotify’s report, the company’s Family Plan was a large driver of the subscription increase.
The company’s Total Monthly Active Users have also increased by 15 million in the first quarter of 2020, reaching 286 million monthly active users, a 31% year-over-year increase.
In the wake of the COVID-19 pandemic, the company stated it has lowered its revenue projections for the year, decreasing its expectations from an earlier range of €8.08 billion-€8.48 billion, down to €7.65 billion-€8.05 billion (approximately $8.29 billion to $8.73 billion) in sales.
In a letter to shareholders, the company stated it saw a “notable decline” in daily active users and consumption in hard hit markets including Italy and Spain, though they have seen listening begin to rebound in the past few weeks. They have seen usage in car, wearable and web platforms drop, though Spotify audiences through TV and Game Consoles has grown. For Ad-Supported monthly active users in the United States, game consoles have been one of the top three platforms in terms of consumption for the better part of the month, and connected device usage generally is up more than 40% among Ad-Supported users globally.
As of 2020 Q1, the company has 5,779 full-time employees globally. The company stated it plans to slow hiring for the rest of the year “until we have better visibility into the economic impact of COVID-19.” The company has reduced open headcount by roughly 30% from prior growth expectations. The company also stated it will “continue to focus our investments in areas of strategic importance, and remain committed to our longterm targets for hiring in Research & Development. Additionally, we are committed to retaining all existing employees, but are mindful about the absolute level of hiring until we have more clarity on the global economic picture and the length of our work from home status.”
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