Spotify has released its first-quarter financial results and the digital audio company reported record high operating income in the process.
During January, February, and March, the company saw its operating income rise to $578 million amidst a rise in subscribers.
The number of premium subscribers to the platform reached 268 million during the first quarter. That’s a 12% year-over-year increase. Additionally, it was the highest growth of subscribers in the first quarter since 2020. Spotify has 678 million monthly active users, above the forecasted 671.9 million.
In total, first-quarter revenue rose 15% to $4.7 billion, which was just under estimates. As a result, the stock price of Spotify dipped after the results were reported.
“The underlying data at the moment is very healthy: engagement remains high, retention is strong, and thanks to our freemium model, people have the flexibility to stay with us even when things feel more uncertain,” Spotify founder and CEO Daniel Ek said. “So yes, the short term may bring some noise, but we remain confident in the long-term story, and the direction we’re heading in feels clearer than ever.”
The news of Spotify’s first quarter earnings comes on the heels of the company sharing that it paid more than $100 million to podcasters who entered its partner program. The Spotify Partner Program is eligible for podcasters in the United States, the United Kingdom, Canada, and Australia. The $100 million figure paid out to podcasters is an impressive one. Patreon said it paid podcasters $472 million in 2024, with more than 6.7 million members subscribing to podcasts on the platform last year.
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