As the third quarter has come and gone, it’s positive news for Spotify, as the company saw an uptick in premium subscribers during the period.
In total, the company finished the quarter with 281 million premium subscribers and 710 monthly active users, it reported in its financial results.
That premium subscriber base grew by 4 million compared to the close of the second quarter at the end of June. That represents a growth of 12%, while monthly active users grew by 11%.
Spotify reported that revenue grew 12% to $4.9 billion during July, August, and September, when using constant currency.
Overall operating income for the company reached $669 million during the quarter, with the gross margin improving to 31.6%.
“The business is healthy. We’re shipping faster than ever. And we have the tools we need – pricing, product innovation, operational leverage, and eventually the ads turnaround – to deliver both revenue growth and profit expansion,” said Spotify CEO and founder Daniel Ek.
“It all comes back to user fundamentals and that’s where we are: 700 million users who keep coming back, engagement at all-time highs. We’re building Spotify for the long-term.”
The news of Spotify’s strong revenue performance comes as Daniel Ek plans to transition to the role of executive chairman with the company on January 1st. Gustav Söderström and Alex Norström — current executives in the product, technology, and business departments for Spotify — are poised to assume the role of co-CEO upon Ek’s transition.
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