US EditionSpotify forecasts profit below estimates on higher taxes, shares sink
SWEDEN, JUL 29 – Spotify grew premium subscribers by 12% to 276 million and revenue by 10% but posted a €86 million loss due to rising operating expenses and currency headwinds, company said.
- On Tuesday, Spotify reported a second-quarter loss of €485 million, missing analysts’ expectations as revenue grew 10% to €4.2 billion.
- Amid the earnings shortfall, Spotify reports operating income topped 406 million euros , while expenses rose due to higher personnel, marketing, and social charges.
- Spotify's revenue for the quarter grew 8%, with premium subscribers up 12% to 276 million and monthly active users increasing 11% to 696 million.
- After the report, Spotify’s shares dropped about 6.9% in premarket trading after closing at $700.98 in New York on Monday, and the board approved a $1 billion increase to its share repurchase programme.
- Looking ahead, Spotify projects $4.9 billion in revenue, below a $4.8 billion estimate, and expects 281 million premium subscribers and 710 million total users.
Insights by Ground AI
Does this summary seem wrong?
41 Articles
41 Articles
Spotify Stock Sinks 10% After Q2 Loss and Weak Forecast, Despite Growing User Base
Spotify’s stock fell sharply on Tuesday, tumbling more than 10% after the company reported a second-quarter loss and issued a weaker-than-expected forecast for the coming quarter. The results came as a surprise to investors, particularly after a strong rally earlier this year. While the streaming giant continues to grow its user base, concerns over profitability and future growth are once again dominating the narrative. In its second-quarter rep…
Coverage Details
Total News Sources41
Leaning Left6Leaning Right2Center10Last UpdatedBias Distribution56% Center
Bias Distribution
- 56% of the sources are Center
56% Center
L 33%
C 56%
11%
Factuality
To view factuality data please Upgrade to Premium
