Spotify has delivered strong results in the first quarter of 2025, with total revenue rising 15 percent year-over-year to €4,190 million, signaling solid momentum across both its Premium and Ad-Supported businesses.
Spotify’s Premium revenue accounted for the majority of this growth, increasing 16 percent year-over-year to €3,771 million, driven by a 12 percent rise in Premium subscribers and a 4 percent increase in average revenue per user (ARPU) to €4.73.
This ARPU improvement reflects the positive impact of price hikes, although partially offset by changes in product and market mix.
Ad-Supported revenue grew at a slower pace of 8 percent, impacted by soft pricing and inventory optimization in Spotify’s Owned & Licensed podcast portfolio, though automated ad sales channels helped bolster performance.
Operating expenses declined by 2 percent year-over-year, aided by lower personnel and marketing costs, and a timing shift in equity grants from Q1 to Q2. Notably, share-based compensation-related social charges fell slightly to €75 million from €82 million a year ago.
On the user front, Spotify’s monthly active users (MAUs) reached 678 million, up 10 percent year-over-year, with growth across all geographic regions, especially in the Rest of World and Latin America. Premium subscribers hit 268 million, growing 12 percent annually and surpassing guidance by 3 million.
This performance, buoyed by strong regional promotions, marked Spotify’s best Q1 in subscriber additions since 2020 and the second-highest first quarter in its history, despite lighter-than-usual marketing activity.
TelecomLead.com News Desk
