Spotify’s Push Into Videos, Podcasts Sees Traction, With 12% Gain in Subscribers in First Quarter

Spotify on Tuesday morning reported it added another 5 million paying customers during the first quarter, indicating its bet on podcasts is continuing to help attract users who are interested in more than just music.

But the stock price of the Stockholm, Sweden-based streaming giant took a big early hit after its quarterly report was released, as its first quarter revenue matched analyst estimates and its operating profit fell short of what Wall Street was aiming for; Investors may have also been expecting Spotify to add more users during the quarter than it did, following a record-setting quarter to close 2024.

Analysts had been looking for Spotify to report an operating profit of $623 million for the quarter, compared to the $545 million the company posted. Spotify’s stock, which has been one of the rare strong performers among the tech giants in 2025, dropped 8% in early morning trading soon after the report was released.

Spotify CEO Daniel Ek, in a statement accompanying Spotify’s report, said his company is well-positioned to be an affordable entertainment choice for users, even as the global economic picture is gloomy.

“The underlying data at the moment is very healthy: engagement remains high, retention is strong, and thanks to our freemium model, people have the flexibility to stay with us even when things feel more uncertain,” Ek said. “So yes, the short term may bring some noise, but we remain confident in the long-term story, and the direction we’re heading in feels clearer than ever.”

Here are some of the key results: 

Revenue: Spotify reported €4.20 billion in first quarter revenue, or $4.78 billion, matching analyst estimates for the quarter. Sales were up 15% from the same time last year.

Subscribers: Spotify added 5 million premium subscribers between Jan. and March and closed the first quarter with 268 million subscribers. That topped analyst projections, which had the company adding about 3 million subscribers during the first quarter.

Interestingly, Spotify adding more-than-expected paying customers helped offset a loss of 2 million ad-supported subscribers during the quarter; Spotify now has 423 million ad-supported customers, following the first quarter decline.

Spotify was coming off of a holiday quarter in which it matched a company record of 11 million new premium subscribers; the company noted this was its second-best first quarter ever in terms of subscriber, following 2020.

Monthly Active Users: There were 678 million monthly active users on Spotify by the end of Mar., which is up 10% year-over-year. But that figure stands out, considering Spotify added a company-record 35 million MAUs during the fourth quarter of 2024, making it seem like the first quarter was a step back by comparison.

Earnings Per Share: The Stockholm-based company reported EPS of €1.07, or $1.22 EPS, which came in below most analyst estimates of about €2.00.

Profit: Spotify’s quarterly profit increased 30% year-over-year, hitting €225 million, or roughly $257 million. The company posted its first annual profit in 2024.

Beyond music, podcasts — and in particular, video podcasts — are becoming a bigger priority for Spotify. That was evident in the first quarter, when the Swedish streaming giant launched its “Spotify Partners Program,” giving creators more tools to create and monetize video podcasts. For podcasters, the big draw is that Spotify will now pay them a slice of extra money, based on how many Premium subscribers watch their show.

The program’s launch came as Spotify is looking to chase down YouTube, which has become the go-to destination for American podcast listeners. Spotify, as TheWrap reported earlier this month, has beefed up its selection of video podcasts in recent years, going from 100,000 in 2023 to more than 330,000 by the end of the first quarter, in an effort to keep podcast listeners on its app — and off of YouTube and Apple’s podcast app.

Heading into Tuesday, Spotify has been one of the rare prominent tech companies that has not seen its share price take a hit in 2025. Spotify’s stock is up 30% on the year and — after trading at an all-time high of $652.53 in Feb. — was trading for nearly $598 per share when markets closed on Monday.

Looking ahead, Spotify noted in its first quarter report that its projections for the second quarter are “subject to substantial uncertainty.” The company projected it will add another 5 million paying customers in the second quarter and that sales will hit €4.30 billion. Spotify is also anticipating it will finish the second quarter with 689 million MAUs — which fell a hair short of what analysts were looking for, and may have contributed to the morning stock drop.

Spotify will hold a call at 8:00 a.m. ET Tuesday to discuss its first quarter report.

The post Spotify’s Push Into Videos, Podcasts Sees Traction, With 12% Gain in Subscribers in First Quarter appeared first on TheWrap.