Spotify Saw Surge in Users, Ad Revenue in 2021 but Stock Tumbles Over Weak Growth Projections

A trader is reflected in a computer screen displaying the Spotify brand before the company begins selling as a direct listing on the floor of the New York Stock Exchange on April 3, 2018. Lucas Jackson/Reuters

Spotify saw a surge in users and advertising revenue in the fourth quarter of 2021, the company said on Wednesday, driven by strong promotional campaign performance.

For the fourth quarter, Spotify reported (pdf) 406 million monthly active users, up 18 percent year on year and at the high end of the company’s guidance range.