Spotify Disappoints on Earnings
Spotify shares were down as much as 10 percent during Wednesday's session.
Here are the details from the earnings report:
- EPS: -$0.79 versus analyst expectations of -$0.69
- Sales: $2.58 billion versus analyst expectations of $2.61 billion
Spotify added 11 million paid subscribers in the quarter, bringing the total to 155 million subscribers worldwide. Analysts expected the company to add 9 million new subscribers. Furthermore, the company reported 345 million monthly active users, up 27 percent year-over-year.
The music and podcasting company also released guidance that expects to lose $63.6 million on sales of $2.51 billion in the first quarter. Analysts were forecasting that guidance for the quarter would have revenue at $2.69 billion.
Truist Securities analyst Matthew Thornton stated that Spotify's financials and guidance were disheveled by unpredictability in foreign-exchanges.