Spotify finished the first quarter of 2018 with 170 million monthly active users and 75 million premium subscribers, up 30% and 45% respectively. The user and subscriber numbers came as the company announced its first quarter financial results that saw Q1 revenue of $1.36 billion (1.139 billion euros), up 26% from a year ago. The Q1 results reflect the quarter just prior to the company going public on April 3.
Europe accounts for the largest share of Spotify subscribers (40%) and monthly active users (36%). North America is second (31% of subscribers, 32% of users), followed by Latin America (20% of subscribers, 21% of users).
After hours shares were down more than 5% after results were released, as CNBC reports “the company is still losing money, as it invests in research and development staffers, which made up almost half of new hires during the quarter.” Guidance for Q2 was “slightly lighter than estimates,” CNBC said, with the Swedish company saying it expects to lose up to 330 million euros this year ($395 million).
The company went public April 3, making today’s announcement Spotify’s “first interim report as a public company,” a release read. Spotify also upgraded its free, ad-supported platform, which is now designed to give users greater control, a simpler interface for mobile and new controls to aid with personalized discovery. A partnership with Hulu was expanded, offering a similar deal as its Student Bundle to its Standard Plan subscribers. The bundle will be available to new subscribers this summer.
Ad-supported monthly active users totaled 99 million at the end of Q1, up 21%. “We continue to see strong growth in emerging markets, particularly Asia given our recent launches in Vietnam and Thailand, as well as increasing momentum in Japan,” the company said.
Premium subscribers grew to 75 million, an increase of 45% year-over-year. “Plan additions continued to be a source of strength,” the company reported. “We also extended the length of our trial programs from 30 days to 60 days in certain key markets including the U.S., Australia, and Brazil, which we believe will have a positive effect on conversion and smooth some of the seasonal intake trends over time.”