1 Number for Spotify Investors to Watch
One of the keys to Spotify's (NYSE: SPOT) long-term success will be raising its average revenue per user (ARPU). While management long resisted price increases, it started enacting them around the world at the end of 2020 and through the first half of 2021. As a result, the company saw ARPU increase 6% year over year in the first quarter, contributing toward its total revenue growth of 24%.
Spotify says investors shouldn't expect the same level of ARPU growth in the last three quarters of the year as it laps its price increases. Nonetheless, investors should expect ARPU to have bottomed in 2021 with incremental improvements moving forward. Here's how that should impact Spotify's financials.
Image source: Spotify.
Source Fool.com
