Spotify CEO: Upping User Engagement and Expanding AI Use Paid Off

Core Insights - Spotify's third-quarter results indicate strong momentum and the achievement of long-term strategic goals, with a notable increase in key metrics [1][2] - Monthly active users rose by 11% to 640 million, subscribers increased by 12% to 252 million, and total revenue grew by 19% to €4 billion ($4.2 billion) [2] Growth and Strategic Focus - The company has made necessary adjustments to focus on cost efficiency while continuing to transform its business, including expanding into audiobooks and launching new subscription tiers [3] - User engagement has been a key driver of success, with new features like music videos for Premium users leading to higher retention rates [3] Technological Innovations - The introduction of AI-powered features, such as the AI Playlist and daylist, enhances user experience and personalization [4] - Spotify's partnership with Google Cloud has been leveraged to improve personalized recommendations through advanced AI tools [5] Engagement and Marketing Strategies - The company emphasizes increasing user engagement and reducing churn, with AI playing a significant role in these efforts [6] - Marketing efforts have been optimized, with increased spending justified by improved efficiency and favorable customer acquisition cost-to-lifetime value ratios [8]