The music streaming service recently reported its quarterly performance of the current year. According to the reports, Spotify surpassed Wall Street estimates in the Q3 of 2021. The company was estimated at hitting 171.7 million new subscribers, while it actually gained 172 million in the third quarter.
The number of paid subscriptions went up by 19%, hitting a total of 381 million users. The company saw an increase in its profits, generating a larger revenue from Europe and North America.
Spotify, previously observed its ad revenue plummet due to the pandemic, however, recently it has jumped up by 70%, which is approximately EUR 323 million. Seeing a boost in advertisement sales, the company is planning to recruit more members to its existing advertisement team.
The total revenue, on the other hand, has risen by 27% which makes EUR 2.50 billion for the third-quarter. In order to further maximize its profits, Spotify is giving a tough time to its rival Apple, by investing heavily on podcasts.
“While we have been relentless in our pursuit of being the world’s largest audio platform, it’s still early days and we are just getting started,” said CEO Daniel Ek.
It is also worth noting, that Spotify saw an upsurge in its total net profit, i.e. EUR 2 million, while overcoming its loss of EUR 101 million in 2020.