Spotify stock plummets after earnings beat expectations as guidance disappoints
Spotify's stock dropped over 13% despite beating first-quarter earnings expectations, as weaker-than-expected guidance for subscriber growth and operating income disappointed investors. Revenue and user numbers rose, with 4.5 billion euros in sales and 761 million monthly active users, but projected premium subscriber additions fell short of analyst forecasts. The company cited substantial uncertainty in its outlook while maintaining aggressive pricing strategies to boost profitability. Second-quarter operating income guidance also lagged behind Wall Street estimates.
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Shares of Swedish audio-streamer Spotify fell over 13% after the market opened Tuesday, as soft guidance overshadowed an earnings beat.The company said first-quarter revenue rose 8% from last year to 4.5 billion euros ($5.3 billion), while monthly active users (MAUs) rose 12% year-on-year to 761 million, both slightly above FactSet estimates.Premium subscribers grew 9% to 293 million, reflecting 3 million quarterly net adds, Spotify said. For the current quarter, Spotify expects to add 17 million net users to reach 778 million MAUs.
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