Spotify is on track to break even on its podcast business by next year, said Spotify CFO Paul Vogel during the company’s third quarter earnings call on Tuesday morning. In June 2022, Vogel had announced the goal of making the platform’s podcast business profitable within one to two years.
“We’re right in line with that timeline,” Vogel said on Tuesday during the earnings call. “We should actually get to break-even in podcasting pretty soon. And we feel really good about the trajectory of the podcasting trends having gone from a pretty big drag a year ago, to something that’s a pretty minimal drag to something that should be positive to gross profit in a pretty short term.”
This improvement was buoyed by podcast advertising revenue growth, which “remained in the healthy double-digit range,” according to the shareholder presentation, which was “partially offset by softer pricing.” Spotify does not break out its podcast margins from the rest of its business.