Spotify sees double-digit MAU growth with 'meaningful contribution' from US, India

Music streaming platform Spotify on Wednesday said its monthly active user (MAU) base has seen healthy double-digit growth in the March 2021 quarter over the year-ago period with ''meaningful contributions'' from markets such as the US, Russia, and India.

The total monthly active users (MAU) for the platform grew 24 per cent year-on-year to 356 million in the quarter, ''finishing within our guidance range but modestly below our internal expectations''.

Spotify had guided for its total MAUs to be in the range of 354-364 million in the first quarter of 2021.

''In Q1, we added 11 million MAUs, which drove healthy double-digit Y/Y growth across all regions. We saw meaningful contributions from markets such as the US, Mexico, Russia, and India. However, growth was lower than plan in Latin America and Europe. In aggregate, the performance of our newly launched markets was in line with our expectations,'' a statement said.

It added that global consumption hours continued to grow meaningfully in the first quarter on a y-o-y (year-over-year) basis.

Per-user consumption grew in developed regions such as North America and Europe while developing regions showed signs of improvement but remained below pre-COVID levels, Spotify noted.

''I'm pleased with the continuing momentum we are seeing across many aspects of our business this quarter, including our subscriber growth. 2020 was a very strong year for Spotify and we believe Spotify is well-positioned to continue to extend our leadership globally as we move forward," Spotify Chief Executive Officer and founder Daniel Ek said.

Spotify's premium subscribers base grew 21 per cent y-o-y to 158 million in the quarter, hitting the top end of its guidance range of 155-158 million.

The company's total revenue grew 16 per cent to 2,147 million euros in the March 2021 quarter from the year-ago period. On a constant currency basis, the revenue was higher by 22 per cent y-o-y.

For the June quarter, Spotify expects its total MAUs to be between 366-373 million, and the total premium subscriber base to be in the range of 162-166 million. It expects total revenue to be between 2.16-2.36 billion euros in the second quarter.