Streaming recovers, after having a less complicated quarterly report Netflix was the first company to deliver more encouraging results. Now Spotify has followed suit, reporting 456 million monthly active users for the quarter, up 20% year-over-year, and 195 million paid subscribers, up 13% from a year ago.
The company had said it expected to add roughly 17 million new monthly active users in the third quarter, bringing its total to 450 million. It also expected its revenue to rise to €3 billion, just over $3.1 billion.
However, Spotify shares fell 7% in extended trading, after reporting earnings.
Despite this, the streaming company continues to invest in advertising, and its income for this purpose grew by 19%, in addition to representing 13% of its total income. The company said this growth was thanks to podcasts.
The platform actually hosts more than 4.7 million podcasts, according to the report, so in addition to this vertical, its new audiobook business will be able to bring in new revenue.
In September, the company announced that its users in the United States can buy and listen to more than 300,000 different audiobook titles, marking its latest attempt to turn its platform into a one-stop shop for all things audio.