In the second quarter, Spotify’s gross margin was 24.6%, compared with 28.4% in Q2 2021. Spotify’s previous Q2 guidance was to hit 428 million monthly users and 187 million paying subs, with revenue of €2.80 billion and a net loss of €197 million. Subscription revenue increased 22% to €2.50 billion, with average revenue per sub increasing 6% year-over-year to €4.54 (excluding foreign-exchange rates).

Spotify’s ad-supported revenue jumped 31% to €360 million, reaching an all-time high as a percentage of total revenue at 13%. Shares of Spotify popped more than 15% in early trading on the results, while the stock is still down more than 50% year to date. “While we continue to monitor the uncertain macroenvironment, we are very pleased with the resilience of the business, particularly our strength in MAUs and subscribers,” Spotify said in the Q2 shareholder presentation. Spotify reported a net loss of €125 million for the period, versus a net loss of €20 million in the year-earlier period.

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