Lucas Jackson / Archyde.com
Earlier Spotify disclosed its ownFourth quarter results, according to the financial report, the number of its Premium paid subscribers has increased to 205 million (currently, the number of monthly active users on the platform is close to 500 million), an increase of 10 million from the previous quarter. Meanwhile, the company’s revenue of 3.17 billion euros last quarter beat expectations on both key figures. However, due to what CEO Daniel Ek called “over-ambitious” measures, Spotify recorded a loss of 270 million euros in Q4, a significant increase from the 39 million euros in the same period a year ago. Throughout the year, the company’s total revenue was 11.7 billion euros, with a net loss of 430 million.
In the financial report, Spotify mainly attributed the loss to “increased personnel costs caused by the increase in the number of employees and the increase in costs.” In addition, exchange rate fluctuations also have a considerable impact. In response to the current situation, Spotify announced a 6% layoff last week as part of a restructuring plan, and Chief Content Officer Dawn Ostroff also left in this wave of personnel changes. Daniel Ek said that next they will “fundamentally change the way management operates”, and predicts that paid subscribers will rise to 207 million in the new quarter, and the number of monthly active users will also exceed the 500 million mark.