Spotify’s SPOT Premium revenues increased 15% year over year to €4.33 billion, or 16% on a constant-currency basis, supported by subscriber and monetization gains. Subscribers grew 9%, while Premium ARPU advanced 7% to €4.89. On a constant-currency basis, ARPU rose 7.4%, with price increases providing the main lift and product and market mix limiting some of the benefit.
Higher pricing is translating into stronger premium monetization without interrupting subscriber expansion. Revenue growth is thus being supported by a larger paying audience and increased revenue per subscriber. Continued pricing benefits could sustain momentum, although the mix of products and markets remains an offset to watch.
Spotify Technology Revenue (TTM)
Spotify Technology revenue-ttm | Spotify Technology Quote
Advertising Shows Measured Progress
Ad-Supported revenues grew 1% year over year, or 3% at constant currency. Music advertising benefited from more impressions sold, but softer pricing partly reduced that contribution. Podcasting improved through stronger sponsorship activity across Spotify’s Owned and Licensed portfolio. Automated sales channels remained the largest drivers of advertising growth, underscoring their importance as the operation evolves.
How Do Two Streaming Peers Compare?
Apple AAPL and Amazon AMZN remain peers in audio streaming. Apple benefits from tight integration between its music service and device ecosystem, while Amazon can connect streaming with Prime memberships and smart speakers. Spotify, however, relies more directly on subscriber growth, ARPU gains and advertising execution because audio anchors its business. For investors, Apple represents an ecosystem-led model, whereas Amazon demonstrates the appeal of bundled services. Spotify’s improving monetization indicates that its focused strategy remains competitive.
SPOT and AAPL currently carry a Zacks Rank #3 (Hold) each. AMZN carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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