Shares of Spotify plunged by 7% on Tuesday following the release of their second-quarter results, which fell short of analysts’ revenue expectations and provided weaker guidance for the future. Here’s a breakdown of how the company performed:
– Loss per share: €1.55, not comparable to estimates
– Revenue: €3.18 billion, missing the projected €3.21 billion by analysts
Despite the disappointment, revenue did increase by 11% compared to the previous year’s €2.86 billion. In the second quarter of 2022, Spotify reported a loss per share of 85 euro cents. The company anticipates reporting a total revenue of €3.3 billion in the third quarter, slightly lower than the expected €3.4 billion according to StreetAccount.
During the quarter, Spotify saw a 27% year-over-year growth in monthly active users, totaling 551 million. There was a net addition of 36 million monthly active users. Additionally, the platform reported 220 million paid subscribers, a 17% increase from the previous year.
In their first-quarter report, Spotify projected the addition of approximately 15 million new monthly active users in Q2, bringing the total to 530 million. They also expected a revenue of €3.2 billion and 217 million paid subscribers for the quarter.
The net loss for the quarter amounted to €302 million, higher than the €125 million loss reported in the year-ago quarter.
Spotify continues to invest in advertising, with a 12% year-over-year growth in ad-supported revenue. The company highlighted that podcast advertising revenue growth has re-accelerated, surpassing 30% year over year.
Recently, Spotify announced plans to increase the prices of its Premium subscription offerings by up to $2, resulting in a 20% increase for certain plans. The company stated that the market landscape has evolved since its launch, and these changes will help deliver value to both fans and artists.
In the U.S., the Premium Individual plan now costs $10.99, up from $9.99. The Premium Duo plan is priced at $14.99, up from $12.99. The Premium Family plan is now $16.99, up from $15.99, and the Student offering costs $5.99, up from $4.99.
Spotify expects the price hikes to have minimal impact on their total revenue in the third quarter, as stated in their report on Tuesday.
The company will hold its quarterly call with investors at 8 a.m. ET.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
