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Spotify July 28 , 2021 Dear Shareholders , Most of our major metrics -- Subscriber growth , Revenue , Gross Margin , and Operating Income -- performed better than expected this quarter . The exception was MAUS , where we fell short of our guidance range . The quarter was led by improving ARPU , decreased churn , a return to per user consumption growth , and significant advertising strength . We did see a second quarter of greater MAU variability mainly due to ongoing COVID - 19 headwinds and a temporary issue related to user intake on a third party platform . However , trends improved in the back half of the quarter . Additionally , we generated positive Free Cash Flow of € 34 million . SUMMARY USER AND FINANCIAL METRICS USERS ( M ) Total Monthly Active Users ( " MAUS " ) Premium Subscribers Ad - Supported MAUS FINANCIALS ( ЄM ) Premium Ad - Supported Total Revenue Gross Profit % Change Q2 2020 Q1 2021 Q2 2021 Y / Y Q / Q 299 356 365 22 % 3 % 138 158 165 20 % 4 % 170 208 210 24 % 1 % 1,758 1,931 2,056 17 % 6 % 131 216 275 110 % 28 % 1,889 2,147 2,331 23 % 9 % 479 Gross Margin 25.4 % 548 25.5 % 663 28.4 % 38 % 21 % Operating ( Loss ) / Income ( 167 ) 14 12 Operating Margin ( 8.8 % ) 0.7 % 0.5 % Net cash flows from operating activities 39 84 65 54 Free Cash Flow¹ 27 41 34 ( 17 % ) ( 17 % ) 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