Spotify Hits Record 551 Million Active Users Amid Growing Expenses

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Spotify Hits Record 551 Million Active Users Amid Growing Expenses
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Operating expenses at the company, which has been promising to focus on profitability, grew to reach €247 million, missing the company’s guidance of €129 million.

reported 551 monthly active users in its second quarter, adding 36 million from the previous quarter and hitting an all-time high for the company.

Additionally the music giant added 10 million paid subscribers, three million above its guidance forecast and a record for the second quarter, to reach 220 million. Still operating expenses at the company, which has been promising to focus on profitability, grew to reach €247 million, missing the company’s guidance of €129 million. The number was impacted by “charges related to our actions to streamline operations and reduce costs,” the company said. These charges had been excluded from Q2 guidance, Spotify said. Gross margins hit 24.1 percent, compared to guidance of 25.5 percent.

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