Spotify stock plummets after earnings beat expectations as guidance disappoints
Spotify's stock dropped over 13% following its earnings report, despite beating revenue expectations. The company reported an 8% increase in first-quarter revenue and a 12% rise in monthly active users. However, disappointing guidance for future growth led to investor concerns.
- ▪Spotify's first-quarter revenue rose to 4.5 billion euros, exceeding estimates.
- ▪Monthly active users increased to 761 million, slightly above expectations.
- ▪The company expects to add 17 million net users in the current quarter, reaching 778 million MAUs.
2 outlets in our directory ran this story. All of the coverage we found sits in one bucket: centre. That one-sidedness is itself worth noticing.
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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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