Spotify had an impressive first quarter of 2020 despite the ongoing coronavirus pandemic. According to a letter from the company, Spotify added 6 million new subscribers during Q1 as folks stay at home and quarantine amid the global crisis.
However, ad sales were negatively impacted by the pandemic which has led the company to adjust its revenue forecast for Q2 and beyond.
“Despite the global uncertainty around COVID-19 in Q1, our business met or exceeded our forecast for all major metrics,” the company said in a letter to its shareholders. “For Q2 and the remainder of the year, our outlook for most of our key performance indicators has remained unchanged with the exception of revenue where a slowdown in advertising and significant changes in currency rates are having an impact.”
When the quarter ended on March 31, Spotify had a total of 130 million paying customers.
From the New York Post:
During the quarter, Spotify posted a profit of $1.1 million but an operating loss of $18.5 million. Revenue grew 22 percent to $2 billion, besting analysts’ sales projections of $1.86 billion. For the second quarter, Spotify expects paid subscribers in the range of 133 million to 138 million. Analysts were expecting 136.5 million. It also anticipates total revenue in the range of $1.90 billion to $2.21 billion. Analysts are looking for $2.19 billion.
That’s still not too shabby.
While some companies are struggling to stay open during the pandemic, it’s clear that there still is an overwhelming need for quality content and people seem to be looking to Spotify as one of the answers.