Spotify has published its much anticipated 2016 revenues. Because the company is under so much analytical scrutiny, there is little that is particularly surprising but there is still plenty we can learn from the results: Growth maintains momentum: Spotify recorded revenues of €2.9 billion in 2016, up 51% from €1.9 billion in 2015. Although that was a lower growth rate in % terms (80% for 14/15), it was a bigger net add in revenue terms (€989 million net new revenue in 2016 compared to €863 million in 2015). Spotify still has some way to go before it challenges Netflix’s $8.2 billion streaming revenue, but it is making clear progress. Spotify is getting ready for public reporting: The 2016 accounts featured heavy restating of previous year figures and many line items from last year’s accounts were no longer reported. All of which points to an organization getting its reporting structures in place for a public listing of some kind. ARPU is a mixed story: Spotify’s total monthly user ARPU increased from €1.82 in 2015 to €1.94, driven by a small increase in ad supported user APRU and, more importantly, a higher share of paid users (38% in 2016 compared to […]
Spotify has published its financial results for 2016, and they reveal that the company’s net loss increased from €231.4m in 2015 to €539.2m ($601.4m) last year.
The company’s revenues grew from €1.93bn in 2015 to €2.93bn ($3.27bn) in 2016. So, Spotify’s income grew by just under 52% year-on-year, but its losses increased by 133%.
Spotify’s operating loss increased from €236.3m in 2015 to €349.4m in 2016, with the company citing “the cost of debt and the impact of foreign exchange rates on our debt and investments” as the reason for the disparity with its net loss.
As for costs, in the financial filing, Spotify cited “product development, international expansion, and a general increase in personnel” as the key elements in its operating loss for 2016.
The financials reveal that Spotify spent €206.9m on product development in 2016; €417.9m on sales and marketing; and €175.2m on general and administrating costs.
The company’s average headcount grew from 1,581 in 2015 to 2,162 in 2016, with wages and salaries expenses of €231m that year: an average salary of €106.8k.