Aside from the fact that the company is still losing money
, there were plenty of positives to take away from Spotify’s F-1 prospectus
filed with the SEC this week. When focusing on operational instead of financial metrics, the music streaming service looking to go public via direct listing in the upcoming weeks makes a pretty compelling case for itself.
First and foremost, Spotify’s subscriber base continues to grow at a rapid pace. In Q4 2017, the company had 159 million monthly active users, of which 71 million where premium subscribers. More importantly though, the ratio of paid to free users is constantly improving, meaning that more and more users are deciding to pay for Spotify’s service.
Last but not least, Spotify
is doing a great job at keeping its subscribers on board. The company’s premium churn, i.e. the cancellation rate of its paying customers, declined from 7.7% in 2015 to 6.6% in 2016 and 5.5% in 2017, indicating a high degree of customer satisfaction.