Spotify and LinkedIn’s Q2 Earnings Report 2019 – The Buyer’s Journey 83

As marketers we use a lot of platforms for our marketing efforts. This is the sixth in a series of episodes focusing on the Q2 earnings reports of those platforms. Today, we’re looking at Spotify and LinkedIn’s Q2 earnings report and we’ve got a breakdown of everything you need to know.

Q2 Spotify Earnings Report Quick Numbers

Here are a couple quick-hit numbers on Spotify via Chris O’Brien on VentureBeat:

  • 31% growth in premium subscribers to 108 million.
  • That’s 12 million new subscribers so far in 2019.
  • Revenue is up 31%, as well. Spotify’s revenue for Q2 was $1.86 billion.
  • The company also posted a loss of $82 million. That’s down from $158 million in Q1, and $439 million in Q2 2018.
  • Total monthly active users, including the free ad-supported tier, grew to 232 million, up 29%.
  • Spotify attributes it’s growth in monthly active users to its improved podcast offerings.

Regarding it’s ad business, Spotify had a great section in it’s earnings report. Here’s an excerpt in full:

“For the Ad-Supported business, Direct revenues outperformed our forecast primarily due to strength in the US. Audio was our fastest growing product for the third consecutive quarter, up 38% Y/Y, and Asia remained our fastest growing region. Programmatic and Ad Studio revenue growth accelerated to 71% in Q2, and now account for approximately 30% of total Ad-Supported revenue. Programmatic growth in the US exceeded 50%, and our next 5 largest markets in aggregate increased triple digits Y/Y. We are seeing increased demand for podcast advertising following our recent acquisitions and continued development of owned and exclusive non-music audio content. While still relatively small, we continue to expect fast revenue growth from podcasts through the remainder of 2019 and into 2020. Over time, our ambition is to reinvent the podcasting ad experience by building a new tech stack to enable targeting, measurement, and reporting capabilities like we have for our core Ad-Supported offering.”

Q4(Q2) Microsoft and LinkedIn Earnings Report Quick Numbers

  • Microsoft reported a revenue of $33.7 billion compared to $30.1 billion Q4 2018.
  • Net income reported at $13.2 billion, up from $8.9 billion the same time last year.
  • Earnings per share: $1.71, up from $1.14 year-over-year.
  • LinkedIn revenue increase 25% with record levels of engagement highlighted by LinkedIn sessions growth of 22%.

Ultimately, LinkedIn is succeeding in keeping users on for longer. That’s fantastic for the platform, but we’re still unsure of its usefulness for advertising compared to the ROI of other platforms. In addition, LinkedIn gains revenue from paid subscriptions within the platform. Because of this, there’s no way to distinguish how much of their revenue is from subscriptions or ads.

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Matt McGrorty

Videographer / Podcaster

Emails you will look forward to.

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