Spotify Earnings: Too Many Notes, Stock Plunges Nearly 10%

ON-CM227_Spotif_D_20180403113909.jpgSpencer Platt/Getty Images

Four weeks after it went public in an unconventional direct listing, Spotify Technology  (ticker: SPOT) reported its first quarterly results  and fell short of estimates.

The news was not music to the ears of investors, who dinged the music service in extended trading. Shares of Spotify were are down nearly 10%, to $153.50.

First-quarter revenue, year-over-year, climbed 26%, to 1.14 billion euros. The company lost 41 million euros during the quarter as it continues to pour money into research and development staffers, which comprised nearly half of its quarterly hires.

The Street had expected revenue of 1.14 billion euros, according to analysts polled by Thomson Reuters.

Spotify's 75 million paid subscribers fell shy of FactSet's consensus estimate for 75.1 million. Rival Apple Music last month said it had reached 40 million paid users, up from 27 million in June.

The same held true for guidance: Spotify saw revenue for the current quarter ranging from 1.1 billion euros to 1.3 billion euros, compared with 1.29 billion euros expected by a Thomson Reuters consensus estimate.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Technology , Stocks

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