Spotify had a downward trend that started slowly with the increase of its competitors in the virtual music platform market. The amount of decrease in the chart increased day by day and reached serious dimensions. Although necessary work has been done to reverse this graph, the latest financial reports revealed that the measures taken did not fully work. Of course, with this report, “I wonder if Spotify is going bankrupt?” questions began to be asked. Here are the details about the latest Spotify financial report announced…
Spotify continues to lose blood despite the increasing number of subscribers!
Spotify shared new content ideas with its users to increase the decreasing profitability rate. Spotify, whose podcast content attracts a lot of attention, increased the number of new users in the first quarter of 2023. This event, which seems to be a big profitability move when viewed from the outside, does not seem to offer what is wanted when looking at the financial reports.
Spotify broke its own record in the increase in the number of active users in the first quarter 2023 report announced. The company reached 515 million active users in the first 3 months of 2023, with an increase of 22%. While this was the biggest user growth and number of Spotify ever, it was not the same in terms of profitability.
New “nonsense” feature from WhatsApp!
The news of the new WhatsApp update, which users called nonsense, was shared. Here are the details on the subject…
When the company’s overall growth and user age ratios are considered, it has made progress in all age groups. In addition, it became one of the companies with the highest growth rate in the world stock markets, especially among developed and developing countries.
But when it comes to money earned and profitability, the situation is not as bright as the others. Although the company increased its user base and subscription revenues, it suffered more than $231 million in revenue in the last four months of 2022. In the first three months of 2023, the company suffered a revenue loss of $248 million.
After the pandemic, Spotify fired 6 percent of its employees in January to optimize company expenses and save money. In addition to this, Spotify thought that it would experience an increase in income with the new user base, which made savings in other expenses. The expected is not yet, but the company management and experts think that in 2023, Spotify will restore its profit rate and increase its profitability rate.
So what do you think? Do you think Spotify will go bankrupt? Don’t forget to share your comments with us…