Spotify hits record 751M monthly users thanks to Covered, new free app

The Swedish music giant Spotify saw an increase in users last quarter, led by its end-of-year campaign “Covered”, which combines statistics and listening of users, and new features in its free segment.

The company said it saw 38 million new users in the fourth quarter, taking it to 751 million monthly users, up 11% from last year. Paid subscribers increased by 10% to 290 million in the quarter.

Spotify said the “Covered” campaign generated more than 300 million users and 630 million shares on social media in 56 languages.

Revenues came in at €​​​​4.53 billion ($5.39 billion), about 7% more than a year ago, due to an 8% increase in subscription fees. However, the ad-supported business saw revenue fall 4% to €518 million ($616.6 million). Gross margin, the key investors watch for changes in Spotify’s profitability, improved by 83 points to 33.1% as the company sold more ads for podcasts and music.

A strong performance comes in the form of Spotify’s new CEO Gustav Söderström and Alex Norström. continue guidance from co-founder Daniel Ek, and will now oversee a business that has grown far beyond what it originally intended.

After launching as a pure streaming service, Spotify has expanded its offerings to include podcasts, audiobooks, and more. bookstores. It has been introduced music videos in-app and video podcasts, and has expanded its portfolio by adding features such as chatting and allow users to share what they are listening to. You can use Spotify to book tickets to concertsor search story behind the music.

The company has also added AI features like AI DJcreated by AI list of gamesand now allows users except follow the instructions to help them improve their listening skills.

Profitability has been the focus of Spotify in recent years, and the company has worked hard to achieve this increasing subscription rates in the US and Europe. It is again added new features to its free, ad-supported feature to attract more people away from competitors such as YouTube Music and Amazon Music, allowing users to search and choose the music they want to listen to.

The company expects to reach 759 million users, with 293 million paying subscribers in the current quarter.