In the first quarter of 2025, Spotify Technology S.A. reported a 10% year-over-year increase in total monthly active users (MAUs) to 678 million and a 12% rise in premium subscribers to 268 million. The growth is attributed primarily to the company’s strategic focus on emerging markets, particularly in Latin America and other regions, which are essential for user acquisition.
Management anticipates adding 11 million MAUs and 5 million premium subscribers in the second quarter of 2025. Spotify’s user engagement strategies include leveraging AI for personalized listening experiences, which have further boosted retention and user attraction amid competition from Apple Music and Amazon Music.
Year-to-date, Spotify’s stock has surged 56.7%, outperforming the industry average of 12.7%. The company’s forward price-to-earnings ratio stands at 60.91, above the industry’s 39.53, signaling high investor expectations.
