Spotify reached 108 million paying subscribers at the end of June, according to its second-quarter earnings report.
While this marks an increase of 31 percent from the first quarter, it’s still shy of the 108.5 million projected by analysts. Spotify says the slower-than-expected growth is the result of fewer people signing up for its discounted student plan during the second quarter.
Meanwhile, Spotify amassed 232 million monthly active users (MAU) during the second quarter, up from the 217 million it reported in Q1. MAU includes both paying subscribers and people who use Spotify’s free, ad-supported tier.
Overall, Spotify generated revenue was €1,667 million ($2.43 billion CAD) in Q2, representing growth of 31 percent year-over-year. Specifically, revenue from paid subscribers also rose 31 percent from the year prior to account for €1,502 million ($2.19 billion CAD), ahead of expectations. Ad-supported revenue, on the other hand, was €165 million ($241 million CAD) — a 34 percent year-over-year increase.
For comparison, rival music streaming service Apple Music surpassed 60 million paying subscribers by the end of June. However, Apple doesn’t report on individual revenue for Apple Music and instead lumps it together in a broader ‘Services’ division.
Looking forward, Spotify predicts it will hit between 110 million and 114 million paid subscribers by the end of September. Further, the company estimates that its MAU will increase to between 240 million and 245 million.