The world’s largest streaming music service has posted its Q2 2020 earnings. Overall, most of the company’s metrics were up in the double digits year-over-year and, more importantly, quarter-over-quarter. However, QOQ numbers were only up in the single digits. Yet, for the most part, it seems the streaming service is holding up well in our COVID-19 times.
Here are the main highlights of Spotify’s Q2 2020:
- Monthly active users (MAU) grew 29% year-over-year to 299 million at the end of Q2.
- Ad-supported MAUs totaled 170 million at the end of Q2, up 31% year-over-year.
- Premium subscribers totaled 138 million at the end of Q2, up 27% year-over-year.
- Total Q2 revenue was €1.889 billion (about $2.2 billion), up 13% year-over-year.
- Of that, premium revenue was €1.758 billion (about $2 billion) in Q2, up 17% year-over-year.
Spotify also said that global consumption hours have recovered to pre-pandemic levels—something investors will find relief in. As the company noted in a press release, “We noted last quarter that we began to see a modest impact on consumption hour trends driven by COVID. As of June 30, global consumption hours have recovered to pre-COVID levels. All regions have fully recovered with the exception of Latin America, which is approximately 6% below peak levels prior to the global health crisis. Regions where the spread of COVID-19 appears to be slowing, including APAC and EU, have led the recovery in consumption.”
Finally, Spotify offered its Q3 guidance—something some companies are reluctant to do given the economic uncertainty of the ongoing pandemic. The company says in Q3 it expects 312 million to 317 million MAUs and 140 million to 144 million premium paid subscribers. It expects total Q3 revenue to be between €1.85 billion and €2.05 billion (about $2.1 billion and $2.4 billion).