Podcasts remain a bright spot for the company. Its net loss in the quarter was $197 million (€194 million), on sales of $2.9 billion (€2.864 billion). Spotify overall beat its own estimates for sales and earnings, but it continues to remain unprofitable. Gross margin dropped to 24.6% from 28.4% a year ago, and missed Spotify’s own estimates of 25.2% for it. Spotify noted that the costs associated with Car Thing were partially offset by a positive change in prior period estimates for rights holder liabilities. Spotify will support those that have been sold, but it seems that this will be the end of the line for Spotify’s much-discussed move into hardware. The device was only really launched earlier this year, and it is still being sold as of this story going out, but with big discounts. This initiative has unlocked helpful learnings, and we remain focused on the car as an important place for audio.” Existing devices will perform as intended. “Based on several factors, including product demand and supply chain issues, we have decided to stop further production of Car Thing units. “The goal of Spotify’s Car Thing exploration was to better understand in-car listening, and bring audio to a wider range of users and vehicles,” a spokesperson told TechCrunch. Spotify’s taking a €31 million charge ($31.4 million) on that business line as it discontinues it. Paid users now stand at 188 million, up 14%.īut it missed on its gross margins, which it said were “negatively impacted by our decision to stop manufacturing Car Thing,” the company’s in-vehicle device for controlling music. The company originally had projected that its exit from Russia and the service outage it had in the quarter would mean only 14 million new users this quarter.
Today the company announced quarterly earnings in which its monthly active users grew by 19%, or 19 million, to 433 million - 5 million above its own guidance. Spotify’s push to complement its music streaming with a big move into podcasting and related content appears to be paying off, despite the ups and downs of operating in an uncertain economic and political climate and Spotify’s exit from its foray into hardware.
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