Spotify passes 500 million users; gross margin flat year-on-year

Spotify’s April 25 results show 515 million monthly active users, up 22% year-on-year, and 210 million Premium subscribers, up 15%.

London headquarters photograph published in Spotify’s February 2020 office tour. Photo: Spotify, London Headquarters press kit. Native crops and resizes.

Premium revenue grew 14% to €2.713 billion. Average revenue per Premium user fell 1% to €4.32, or 2% excluding currency movements; Spotify cites product and market mix.

Gross margin reached 25.2%, beating guidance but unchanged year-on-year. Spotify says better music and podcast profitability was offset by other revenue costs. The operating loss was €156 million. Premium gross margin rose year-on-year to 28.6%; the ad-supported margin was negative 3%.

The March 8 product announcement adds context: Home previews began rolling out to both Free and Premium users. Music and podcast previews weren’t a paid-only benefit; audiobook previews were initially limited to five countries.

The figures don’t isolate the redesign’s contribution.