- Spotify shares fell 7% in extended trading on Tuesday after reporting third-quarter earnings that lowered analyst expectations on revenue.
- Spotify reported 456 million monthly active users for the quarter, up 20% from the year-ago period.
- The company posted 195 million paid subscribers, up 13% year over year.
Spotify Shares fell nearly 7% in extended trading Tuesday after reporting third quarter loss It was broader than analyst expectations.
Here’s how the company did it:
- Loss per share: Estimated loss of 99 euro cents versus 85 euro cents per share, according to Refinitiv, expected by analysts
- Revenue: 3.04 billion euros versus 3.02 billion expected by analysts, Refinitiv . According to
Spotify reported 456 million monthly active users for the quarter, up 20% year over year, and 195 million paid subscribers, up 13% from a year ago.
In its second quarter report, Spotify said it expected to add about 17 million new monthly active users over the period, bringing its total to 450 million. It also expected to increase its revenue by up to 3 billion euros ($3 billion) and post 194 million paid customers in the quarter.
Spotify continues to invest in advertising, and its ad-supported revenue grew 19% year over year and made up 13% of total revenue. The company said the development was inspired by podcasting.
Reportedly, Spotify introduced podcasts in 2015, and it is now home to over 4.7 million of them. In September, the company announced that its US listeners were now able to buy and listen to more than 300,000 different audiobook titles, marking its latest effort to turn its platform into a one-stop-shop for all things audio. .
Spotify organized it Quarterly Earnings Call with Investors 4:30 p.m. ET Tuesday.
Credit: www.cnbc.com /