Spotify has released its Q4 2021 earnings report. The report shows that premium subscribers on the platform grew to 180 million, a 16% increase compared to a similar period in 2020. The growth has been attributed to a strong promotional campaign performance.

Similarly, MAUs grew 18% year on year to 406 million in the quarter and near the top end of our guidance range. Spotify also saw double digit year on year growth in all regions with particular strength in the Rest of World, which was led by strong results in India and Indonesia. Collectively, 120 million MAUs engaged with Wrapped content in Q4 compared to 93 million in 2020, an increase of 29%.

Revenue also grew 24% compared to a similar period in 2020 in Q4 to Ksh. 350 million (€2,689 million) and was above the top end of its guidance range. This is due to significant strength in advertising and favorable FX movements. Gross Margin finished at 26.5% in Q4, above the top end of our guidance range and flat compared to a similar period the previous year.

Podcast MAU ended the year with a double digit increase relative to Q3. Among MAUs that engaged with podcasts in Q4, consumption trends remained strong, up 20% compared to 2020.

The streaming platform has reiterated its commitment to re-align its current guidance practice to better reflect how it runs the business. As for quarterly guidance, going forward Spotify will simplify its approach by providing a single estimate for each metric instead of a range of outcomes. It has so far provided Q1 2022 guidance for Total MAUs, Total Premium Subscribers, Operating Profit/Loss, Total Revenue and Gross Margin.