Spotify announced results for its third fiscal quarter 2019, reporting revenue of €1.7 billion ($1.9 billion), up 28% Year over Year (YoY) and up 4% Quarter over Quarter (QoQ). The company posted an operating profit of €54 million ($60 million). The company also claimed it’s adding twice the subscribers per month as Apple is with Apple Music:
Relative to Apple, the publicly available data shows that we are adding roughly twice as many subscribers per month as they are. Additionally, we believe that our monthly engagement is roughly 2 times as high and our churn is at half the rate.
In June Apple noted that Apple Music had surpassed 60 million paid subscribers, up from the 50 million it had reported this past January. Apple is next set to report fiscal results on October 30th, when we might get an updated indication of its efforts with Apple Music.
Spotify said that its customer retention efforts are paying off with vigorous efforts to attract podcast listeners and a better onboarding experience. The company counts 248 million Monthly Active Users (MAUs) at present, up 30% YoY. It exited Q3 with 113 million Premium subscribers, up 31% YoY. Premium subscription feess accounted for about 90% of the company’s quarterly revenue.
Spotify attributed its rosy news in part to higher gross profit and less-than-expected expenses related to marketing, promotion, and R&D. It also noted to investors that it expects to report an operating loss for the coming quarter.
Do you use Spotify and Apple Music? Or have you made the switch from one to the other? Which do you prefer? Sound off in the comments and let us know.