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Spotify Reaches $2 Billion in Revenue for Q1

Spotify has reported $2 billion in revenue for Q1 2020, topping analysts’ forecasts. Subsequently, the streaming company welcomed a positive net income of $1 million, while many businesses remain at a loss due to the coronavirus pandemic.

With people streaming more frequently while stuck at home, Spotify’s monthly users have reached 286 million, while paid users are at 130 million and ad-supported monthly active users are at 163 million.

According to TechCrunch, the spike falls in line with the surge in media streaming services amid the pandemic. However, while some numbers have surged, other areas have experienced a decline.

“Despite the global uncertainty around COVID-19 in Q1, our business met or exceeded our forecast for all major metrics,” Spotify revealed to 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.”

Spotify reports that consumption is down in areas that have been more heavily impacted by the virus, such as Italy and Spain. Furthermore, listening patterns have changed, as there are fewer people streaming in the car, on the web, and via wearables. Conversely, streaming on gaming consoles and the TV is up by more than 50 percent compared to last year.

Visit Spotify for more from its Q1 earnings report.