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Spotify Reports Strong Paid Subscriber Growth, Announces CFO Is Retiring

Spotify reported a healthy rise in paying subscribers on Monday, and strong growth in its podcasting business. Meanwhile,  CFO Barry McCarthy, who played a key role in taking the company public with a direct listing instead of a traditional initial public offering, is retiring.

Spotify said its premium subscribers totaled 113 million, up 31% from the year earlier period, and that it had 248 million monthly active users—a 30% increase. The number of hours of podcasts streamed by users jumped 39%, the company said, though it acknowledged the growth was off a small base of podcast listeners.

Revenue rose 28% from the year-ago quarter to 1.73 billion euros. Profits totaled 241 million euros, or 36 cents a share. Spotify shares rose more than 13% after the news.

Spotify’s direct listing was seen by many as a success, though the stock price has fallen from its April 2018 debut. The move ignited interest in the method, which allows existing shareholders sell their holdings immediately but raises no new capital. Slack followed Spotify’s example earlier this year and AirBnb is expected to do the same. 

McCarthy is expected to take a Spotify board seat and Paul Vogel, Spotify’s head of investor relations, will replace him as CFO. 

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