NEW YORK (CelebrityAccess) — Music and podcast streamer Spotify reported strong growth in premium users, revenue and ad sales for the second fiscal quarter of 2021.
In their Q2 earnings release, Spotify announced that the company outperformed in virtually all of their major metrics in the quarter, with revenue during the period topping €2,330 million, up by 23% year-over year.
Ad revenue in particular was a bright spot for Spotify during the quarter, propelled by the adoption of its self-service ad buying platform Spotify Ad Studio, which saw revenue increase by 167% from last year.
Gross margin topped their Q1 forecasts, growing by 28.4% over last year in the quarter, which the company attributed to the release of accruals for prior period publishing royalty estimates.
Spotify also reported that their premium users – those paying a monthly subscription for an ad-free music experience, grew 20% year-over-year to 165 million, nearing the top end of the company’s Q1 projections.
Total monthly active users increased by 9 million year-over-year in Q2, to 365 million in the quarter, which fell short of the streamer’s guidance in the first quarter.
“Overall, we saw a return to better growth patterns in the back half of the quarter. Although we continue to face near-term uncertainty with respect to COVID-19, we remain confident in the underlying health of our user funnel, and our existing user retention activity remains consistent with historical trends,” Spotify said in an earnings release.
Spotify highlighted the impact of their pivot towards podcasting, noting that during the quarter podcast share of overall consumption hours on the platform reached an all-time high.