Spotify said it reached 300 million Premium subscribers in its latest quarter, up 9% from a year earlier.
Total monthly active users, including the free ad-supported tier, rose to 777 million, slightly below the company’s forecast. Spotify reported quarterly revenue of 4.78 billion euros, or about $5.5 billion, and net revenue of 545 million euros, or about $628 million. Gross margin reached a record 33.4%.
Spotify said the increase in gross margin was driven by growth in Premium subscribers outpacing costs tied to music, audiobooks and podcasts. The company also pointed to new initiatives introduced in the quarter, including Reserved, a feature that gives fans early access to concert tickets, and a tool that uses AI to generate personalized podcasts for users.
Spotify’s Premium subscriber base is nearly three times the size of Apple Music’s estimated 100 million paid subscribers. The company also faced operational and content issues during the quarter. Spotify had two major outages in May and July, and both lasted for hours.
Spotify has also faced criticism over the volume of AI-generated content on its platform, despite adding verification badges and other tools.
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