Spotify Technology SA shares plunged the most in more than four years after the music streaming leader gave a forecast for operating income in the second quarter that missed analysts’ estimates.
The Swedish company expects operating income of €630 million ($737 million) in the current quarter, it said in a statement Tuesday. That compares with analysts’ forecasts of €674.3 million.
Revenue gained 8% to €4.5 billion in the first three months of the year, in line with analysts’ forecasts for €4.53 billion, according to estimates compiled by Bloomberg. Spotify reported 761 million monthly active users, more than the 759 million Wall Street expected. Paying subscribers rose 9% to 293 million. But in the current quarter, the company is forecasting 299 million premium subscribers, shy of estimates for 300 million.
The results show the challenges facing the new co-chief executive officers, who took the helm earlier this year after co-founder Daniel Ek stepped back after almost two decades at the company. The shares fell as much as 15% as trading got underway in New York, the biggest intraday decline since February 2022. We get reaction from Geetha Ranganathan, US Media Analyst for Bloomberg Intelligence.
--------
More on Bloomberg Television and Markets
Like this video? Subscribe and turn on notifications so you don't miss any videos from Bloomberg Markets & Finance: https://tinyurl.com/ysu5b8a9
Visit http://www.bloomberg.com for business news & analysis, up-to-the-minute market data, features, profiles and more.
Connect with Bloomberg Television on:
X: https://twitter.com/BloombergTV
Facebook: https://www.facebook.com/BloombergTelevision
Instagram: https://www.instagram.com/bloombergtv/
Connect with Bloomberg Business on:
X: https://twitter.com/business
Facebook: https://www.facebook.com/bloombergbusiness
Instagram: https://www.instagram.com/bloombergbusiness/
TikTok: https://www.tiktok.com/@bloombergbusiness?lang=en
Reddit: https://www.reddit.com/r/bloomberg/
LinkedIn: https://www.linkedin.com/company/bloomberg-news/
More from Bloomberg:
Bloomberg Radio: https://twitter.com/BloombergRadio
Bloomberg Surveillance: https://twitter.com/bsurveillance
Bloomberg Politics: https://twitter.com/bpolitics
Bloomberg Originals: https://twitter.com/bbgoriginals
Watch more on YouTube:
Bloomberg Technology: https://www.youtube.com/@BloombergTechnology
Bloomberg Originals: https://www.youtube.com/@business
Bloomberg Quicktake: https://www.youtube.com/@BloombergQuicktake
Bloomberg Espanol: https://www.youtube.com/@bloomberg_espanol
Bloomberg Podcasts: https://www.youtube.com/@BloombergPodcasts
The Swedish company expects operating income of €630 million ($737 million) in the current quarter, it said in a statement Tuesday. That compares with analysts’ forecasts of €674.3 million.
Revenue gained 8% to €4.5 billion in the first three months of the year, in line with analysts’ forecasts for €4.53 billion, according to estimates compiled by Bloomberg. Spotify reported 761 million monthly active users, more than the 759 million Wall Street expected. Paying subscribers rose 9% to 293 million. But in the current quarter, the company is forecasting 299 million premium subscribers, shy of estimates for 300 million.
The results show the challenges facing the new co-chief executive officers, who took the helm earlier this year after co-founder Daniel Ek stepped back after almost two decades at the company. The shares fell as much as 15% as trading got underway in New York, the biggest intraday decline since February 2022. We get reaction from Geetha Ranganathan, US Media Analyst for Bloomberg Intelligence.
--------
More on Bloomberg Television and Markets
Like this video? Subscribe and turn on notifications so you don't miss any videos from Bloomberg Markets & Finance: https://tinyurl.com/ysu5b8a9
Visit http://www.bloomberg.com for business news & analysis, up-to-the-minute market data, features, profiles and more.
Connect with Bloomberg Television on:
X: https://twitter.com/BloombergTV
Facebook: https://www.facebook.com/BloombergTelevision
Instagram: https://www.instagram.com/bloombergtv/
Connect with Bloomberg Business on:
X: https://twitter.com/business
Facebook: https://www.facebook.com/bloombergbusiness
Instagram: https://www.instagram.com/bloombergbusiness/
TikTok: https://www.tiktok.com/@bloombergbusiness?lang=en
Reddit: https://www.reddit.com/r/bloomberg/
LinkedIn: https://www.linkedin.com/company/bloomberg-news/
More from Bloomberg:
Bloomberg Radio: https://twitter.com/BloombergRadio
Bloomberg Surveillance: https://twitter.com/bsurveillance
Bloomberg Politics: https://twitter.com/bpolitics
Bloomberg Originals: https://twitter.com/bbgoriginals
Watch more on YouTube:
Bloomberg Technology: https://www.youtube.com/@BloombergTechnology
Bloomberg Originals: https://www.youtube.com/@business
Bloomberg Quicktake: https://www.youtube.com/@BloombergQuicktake
Bloomberg Espanol: https://www.youtube.com/@bloomberg_espanol
Bloomberg Podcasts: https://www.youtube.com/@BloombergPodcasts