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Spotify April 28 , 2021 Dear Shareholders , We are pleased with our performance in Q1 . The business delivered subscriber growth and Gross Margin at the top end of our guidance range , a continued improvement in ARPU , and operating income better than plan . We saw greater MAU variability this quarter , but results were within our range of expectations given the outperformance in Q4 and the continued impact from COVID - 19 . Revenue grew by 16 % ( 22 % excluding the impact of FX ) and was at the upper end of our guidance range . Other highlights from the quarter include a successful launch in 86 new markets , a $ 1.5 billion Exchangeable Notes offering , and the acquisition of Betty Labs ( Locker Room ) . SUMMARY USER AND FINANCIAL METRICS USERS ( M ) Total Monthly Active Users ( " MAUS " ) Premium Subscribers % Change Q1 2020 Q4 2020 Q1 2021 Y / Y Q / Q 286 345 356 24 % 3 % 130 155 158 21 % 2 % 163 199 208 27 % 4 % Ad - Supported MAUS FINANCIALS ( ЄM ) Premium Ad - Supported Total Revenue Gross Profit 1,700 1,887 1,931 14 % 2 % 148 281 216 46 % ( 23 % ) 1,848 2,168 2,147 16 % ( 1 % ) 472 Gross Margin 25.5 % 575 26.5 % 548 25.5 % 16 % ( 5 % ) Operating ( Loss ) / Income ( 17 ) Operating Margin ( 0.9 % ) ( 69 ) ( 3.2 % ) 14 0.7 % Net cash flows from operating activities ( 9 ) 107 65 Free Cash Flow¹ ( 21 ) 74 41 ( 39 % ) ( 45 % ) Free Cash Flow is a non - IFRS measure . See " Use of Non - IFRS Measures " and " Reconciliation of IFRS to Non - IFRS Results " for additional information . Spotify Technology S.A. 42-44 avenue de la Gare , LU - 1610 Luxembourg 1