HomeFinanceSpotify shares fall on revenue miss and weak guidance - UnlistedNews

Spotify shares fall on revenue miss and weak guidance – UnlistedNews

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Actions of Spotify fell 7% in premarket trading on Tuesday after the company posted second quarter results which missed analysts’ earnings estimates and offered weaker-than-expected guidance.

Here’s how the company did it:

  • Loss per share: Loss of 1.55 euros, not comparable to estimates
  • Revenue: 3.180 million euros compared to 3.210 million euros expected by analysts, according to Refinitiv

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Revenue increased 11% year-over-year from 2.86 billion euros ($3.16 billion). Spotify posted a loss per share of 85 eurocents in its second-quarter 2022 report. The company said it expects to report total revenue of 3.3 billion euros for its third quarter, below the 3.4 billion euros expected by analysts according to StreetAccount.

Spotify reported 551 million monthly active users for the quarter, up 27% year-over-year. There were 36 million net additions of monthly active users during the quarter. Spotify also reported 220 million paid subscribers, up 17% from a year ago.

In its first quarter report, the company said it expected to add approximately 15 million new monthly active users in the second quarter, bringing its total to 530 million. It also expected revenue of 3.2 billion euros and register 217 million paid subscribers in the quarter.

Spotify posted a net loss of €302 million, an increase from the €125 million loss it posted in the quarter of a year ago.

Spotify continues to invest in advertising, with its ad-supported revenue growing 12% year-over-year. The company said podcast ad revenue growth reaccelerated to more than 30% year-over-year.

On Monday, Spotify announced plans to increase the price of its Premium subscription offers by up to $2, which translates to a 20% increase for some plans. The company said the market landscape has “continued to evolve” since Spotify’s launch, and that the changes will help the company “continue to deliver value to fans and artists,” according to a report. blog post.

In the US, Spotify’s Premium Single offer is now $10.99, up from $9.99, and the price of its Premium Duo plan changed to $14.99, up from $12.99. The company’s Premium Family plan is now priced at $16.99, up from $15.99, and the student deal is $5.99, up from $4.99.

Spotify said in its report on Tuesday that the price increases are expected to have “minimal impact” on the company’s total revenue in the third quarter.

The company will hold its quarterly investor call at 8 am ET.


Sara Marcus
Sara Marcushttps://unlistednews.com
Meet Sara Marcus, our newest addition to the Unlisted News team! Sara is a talented author and cultural critic, whose work has appeared in a variety of publications. Sara's writing style is characterized by its incisiveness and thought-provoking nature, and her insightful commentary on music, politics, and social justice is sure to captivate our readers. We are thrilled to have her join our team and look forward to sharing her work with our readers.


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