It reduced 17% of its staff last year in an effort to control expenses.
CEO of Spotify Daniel Ek announced in December of last year that the firm will be cutting roughly 1,500 people as part of “substantial action to rightsize our costs” in order to achieve its goals.
However, the tech company’s goal has been to reach a billion users globally by 2030.
It was revealed on Tuesday that the mission would recommence in earnest, spending money to attract new viewers.
Spotify’s podcast business accounted for a large portion of company earnings. Gross margins increased from 25.2% a year earlier to 27.6% throughout the quarter.
In order to expand its podcast business, it spent more than a billion euros, hundreds of millions of euros on well-known programs like “The Joe Rogan Experience.”
The business exceeded projections of €3.61 billion with a 20% increase in quarterly revenue to €3.64 billion.
In an effort to increase revenue, Spotify has experimented with various membership plans and hiked costs.
As of right now, 615 million people use Spotify, a little fewer than the 618 million subscribers it had predicted for the quarter. Halfway through the year, 631 million is the target number.
Nonetheless, in line with projections, the number of premium customers increased by 14% to 239 million in the first quarter.
After initially declining following the quarter’s results, Spotify shares turned around and increased 8% in premarket trade on Tuesday.
The Duke and Duchess of Sussex, Michelle and Barack Obama, and other celebrities have all had their podcasts broadcast on the platform.
Just 12 episodes were produced during the two and a half years of the Harry and Meghan contract, which was reportedly worth $25 million (£19.7 million), before it was terminated in June of last year.
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