Spotify (NYSE: SPOT) shares plummeted in extended trading Wednesday when it reported its first quarterly earnings as a public company and gave a disappointing outlook for revenue growth.
Spotify gave guidance for the current quarter that was slightly lighter than estimates. Investors in young tech companies like Spotify tend to have an appetite for growth, and Spotify's could slow next quarter. That's especially important since the company is still losing money, as it invests in research and development staffers, which made up almost half of new hires during the quarter.
The company posted a total user base of 170 million, with 75 million paid subscribers, in line with expectations.
Revenue in line came in at 1.14 billion euros ($1.37 billion U.S.) vs. 1.14 billion euros ($1.37 billion U.S.) expected by experts
Paid subscribers in line registered at 75 million vs. 75.1 million expected. Ad-supported monthly active users displayed a slight beat of 99 million vs. 98 million expected by experts.
Spotify reported a net loss of 169 million euros, narrower than the 173 million reported a year ago. Per share figures weren't immediately comparable to analyst expectations.
A year ago, Spotify reported revenue of 902 million euros (worth $1.09 billion U.S. as of Wednesday).
Guidance for the current quarter included revenue projections 1.1 billion euros to 1.3 billion euros ($1.32 billion to $1.56 billion U.S.) vs. an expected midpoint of 1.29 billion euros ($1.55 billion).
Shares plunged $17.35, or 10.2%, to $152.66
Tech Insider
