Spotify Zooms to 422 Million Users in Q1, Paid Subscriber Growth Hurt by Russian Exit

variety.com:

Todd Spangler NY Digital EditorSpotify topped guidance for total monthly listeners in the first quarter of 2022, despite the loss of 1.5 million paid subscribers in Russia and a roiling controversy over Joe Rogan’s podcast that had elicited calls for a boycott.The audio streamer’s monthly average user base grew 19% in Q1, to 422 million, representing a net gain of 16 million in the period (more than twice its previous forecast).

Spotify topped expectations on MAU growth even excluding a “one-time benefit” of 3 million users who had created new accounts to access the service after an outage in early March.Spotify netted 2 million Premium subscribers, to reach 182 million (up 15% year over year).

That included approximately 1.5 million disconnects from the company’s ceasing Russian operations. “Our business exhibited strength and resiliency in Q1,” Spotify said in announcing the results. “Nearly all of our key metrics surpassed guidance, led by MAU outperformance, healthy revenue growth, and better gross margin.”Click here to sign up for Variety’s free Strictly Business newsletter covering earnings, financial and investment news, and more.Our Premium Subscribers grew 15% Y/Y to 182 million in the quarter, up from 180 million last quarter.

While this is slightly below our guidance, after excluding the involuntary churn of approximately 1.5 million subscribers as a result of our exit from Russia, growth was above expectations and aided by outperformance in Latin America and Europe.“Total MAUs grew 19% Y/Y to 422 million in the quarter, up from 406 million last quarter and above our guidance by 4 million.