(Hypebot) — Spotify’s active monthly users grew 23 million to top 456 million in the last three months, as paid subscribers reached a quarterly record growing 8 million to 195 million.
Revenue grew 22% year on year to top $3 billion for Q3.
Gross margin came in below expectations, “mainly due to an unfavorable adjustment to prior period estimates for
rights holder liabilities.” Spotify also saw slower than forecast advertising growth due to a “challenging macro environment,” aka recession fears.
The streamer launched audiobooks late in the quarter but provided no early numbers.
Read the full earnings report here.
Bruce Houghton is Founder and Editor of Hypebot and MusicThinkTank and a Senior Advisor to Bandsintown which acquired both publications in 2019. He is also President of the Skyline Artists Agency and a professor for the Berklee College Of Music.