Spotify stock falls on revenue miss, lackluster guidance
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Spotify After the music flow platform fell less than the Wall Street’s expectations and weak guidance for the current quarter, the stocks fell approximately 5% before Belltudesday.
How the company does against the LSEG estimates described below:
- Loss: Earning 1,90 euros per share.
- Revenues: 4.26 billion with 4.19 billion euros
The revenues of the Swedish -based music platform increased by 10% of approximately 3.81 billion euros compared to the previous year. The company damaged 225 million euro net revenue or 1.10 euros per share a year ago, 86 million euros or 0.42 euros per share.
Spotify said that 115 million euros contributes to the results of high personnel, marketing and professional service costs and social accusations.
The third quarter guidance was below the Wall Street’s estimation.
The company expects revenues to reach 4.2 billion euros compared to 4.47 billion euros from Streetccount. Spotify said that the estimation formed a 490 -based point head wind due to exchange rates.
Monthly active users on the platform increased by 11% to 696 million, while 12% increased to 276 million compared to the previous year.
Spotify for the current quarter, with 14 million net adds, said it expects 710 million active users per month. The company expects 5 million net new premium subscribers to reach 281 million subscriptions in the third quarter.
During the period, Spotify said it offers a request for artificial intelligence DJ. The company said that the participation with the proposal was roughly doubled last year.
Earlier this year, an indie rock group known as Velvet Sundown on the platform Media won interest He quickly seized more than a million new audience and asked questions about the use of artificial intelligence in creating music. It was confirmed that the “band” was mainly produced by AI after widespread speculation.
In 2024, Spotify released his first full profitability. Stocks increased by 57% this year. Spotify said the quarter ended with more than 7,300 full -time employees.
