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Shares of Spotify fell 7% Tuesday after the corporate launched second-quarter results that missed analysts’ estimates for revenue and provided weaker-than-expected guidance.
Here’s how the corporate did:
- Loss per share: Loss of 1.55 euros, not corresponding to estimates
- Revenue: 3.18 billion euros vs. 3.21 billion euros anticipated by analysts, in accordance with Refinitiv
Revenue was up 11% year-over-year from 2.86 billion euros. Spotify posted a loss per share of 85 euro cents in its Q2 2022 report. The firm mentioned it expects to report a complete revenue of three.3 billion euros in its third quarter, down from the three.4 billion euros anticipated by analysts in accordance with StreetAccount.
Spotify reported 551 million month-to-month lively customers for the quarter, up 27% yr over yr. There have been 36 million internet additions to month-to-month lively customers throughout the quarter. Spotify additionally reported 220 million paid subscribers, up 17% from a yr in the past.
In its first-quarter report, the corporate mentioned it anticipated so as to add roughly 15 million new month-to-month lively customers in Q2, bringing its whole to 530 million. It had additionally anticipated a revenue of three.2 billion euros and to submit 217 million paid subscribers within the quarter.
Spotify posted a internet lack of 302 million euros, a rise from the 125 million-euro loss it posted within the year-ago quarter.
Spotify is continuous to spend money on promoting, and its ad-supported revenue grew 12% yr over yr. The firm mentioned podcast promoting revenue development re-accelerated to greater than 30% yr over yr.
On Monday, Spotify introduced plans to extend the price of its Premium subscription choices as a lot as $2, which interprets to a 20% enhance for some plans. The firm mentioned the market panorama has “continued to evolve” since Spotify launched, and that the adjustments will assist the corporate “proceed to ship worth to followers and artists,” in accordance with a blog post.
In the U.S., Spotify’s Premium Individual providing now prices $10.99, up from $9.99, and the value of its Premium Duo plan modified to $14.99, up from $12.99. The firm’s Premium Family plan is now priced at $16.99, up from $15.99, and the Student providing prices $5.99, up from $4.99.
Spotify mentioned in its report Tuesday that the value will increase are anticipated to have “minimal impression” on the corporate’s whole revenue within the third quarter.
The firm will host its quarterly name with buyers at 8 a.m. ET.