quarterly figures
Investors are not happy with Spotify forecast
Spotify stock fell significantly. Photo: Fabian Sommer/dpa
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Spotify already has to deal with negative headlines, now the music streaming market leader is also missing market expectations and the share is falling significantly.
Music streaming market leader Spotify has missed market expectations with its forecast for the current quarter amid the controversy surrounding corona information on its podcast platform.
The share initially fell by more than 17 percent in following-hours trading, later flattening the minus to around 10 percent.
Spotify expects to have 418 million monthly active users by the end of the first quarter, of which 183 million are said to be paying subscribers. Analysts had expected more. In the past quarter, the number of subscription customers rose from 172 to 180 million. The total number of users grew from 381 to 406 million.
In the past quarter, sales rose by 24 percent year-on-year to just under 2.7 billion euros. In addition to subscription revenues, also made a greater contribution. The bottom line is that the loss of 39 million euros fell from 125 million euros a year earlier.
Spotify was recently in negative headlines following musicians like Neil Young and Joni Mitchell had their songs removed from the streaming service in protest. They accuse Spotify of tolerating dangerous misinformation regarding the corona virus in podcasts. In particular, they refer to the talk podcast by Joe Rogan, which can only be heard on Spotify.
