What just happened? Spotify in its latest earnings written report realized impressive user growth for the fourth quarter of 2022 just connected doubtfulness regarding the pandemic has caused investors to exist weary well-nigh the company's soft outlook for Q1. As a result, share value in Spotify stock is down in early morn trading.

Spotify on Wednesday reported subscriber growth for the fourth quarter of 2022 that vanquish Wall Street expectations.

For the 3-month menses ending December 31,2020, Spotify added 25 million new monthly active users, pushing its total to 345 million – up eight percent consecutively and 27 percent twelvemonth-over-year. As for premium (paying) subscribers, Spotify added 11 1000000 in the quarter to finish at 155 1000000. That'due south proficient for an increase of 24 percentage compared to the same period a year earlier.

Spotify cited an "acceleration of users who appoint with podcast content" during the quarter as one reason for its potent operation.

If you remember, Spotify inked a deal with Joe Rogan in mid-2020 to bring his podcast, The Joe Rogan Feel, to the streaming platform every bit office of a deal rumored to exist valued at more $100 million. In Dec, the show became a Spotify exclusive and by the stop of the year, information technology was the number 1 podcast on Spotify across 17 markets.

Looking ahead, Spotify said it is facing "increased forecasting dubiousness" compared to previous years due to the pandemic and its ongoing upshot on user, subscriber and revenue growth. That said, the company expects Q1 total monthly active users to be between 354 meg and 364 million. Total premium subscribers, meanwhile, are forecasted to attain between 155 million and 158 million.

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