Spotify (SPOT) earnings.
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Actions Spotify fell 7% on Tuesday after the company reported second-quarter results that missed analysts’ revenue estimates and offered weaker-than-expected guidance.
Here’s how the company did it:
- Loss per share: A loss of 1.55 euros, not comparable to estimates
- income: 3.18 billion euros vs. 3.21 billion euros expected by analysts, according to Refinitiv
Revenue was up 11% year-on-year from €2.86 billion. In its Q2 2022 report, Spotify posted a loss per share of 85 cents. The company said it expected to report a total profit of 3.3 billion euros in the third quarter, compared with the 3.4 billion euros expected by StreetAccount analysts.
Spotify reported 551 million monthly active users for the quarter, up 27% year over year. During the quarter, there were 36 million net additions of monthly active users. Spotify also reported 220 million paid subscribers, up 17% from a year ago.
In its first-quarter report, the company said it plans to add about 15 million new monthly active users in the second quarter, bringing its total to 530 million. It also expected revenue of 3.2 billion euros and 217 million paid subscribers in the quarter.
Spotify posted a net loss of €302m, up from a €125m loss in the year-ago quarter.
Spotify continues to invest in advertising, and its ad revenue grew 12% year over year. The company said podcast ad revenue growth accelerated again to more than 30% year over year.
On Monday, Spotify announced plans to raise the price of its Premium subscription offerings to $2, a 20% increase for some plans. The company said the market landscape has “continued to evolve” since Spotify launched, and that the changes will help the company “continue to bring value to fans and artists,” according to a blog post.
In the US, the Spotify Premium Individual offer is now $10.99 from $9.99, and the Premium Duo plan has changed to $14.99 from $12.99. The company’s Premium family plan is now $16.99, down from $15.99, and the student plan is $5.99, down from $4.99.
Spotify said in its report on Tuesday that the price increase is expected to have a “minimal impact” on the company’s overall revenue in the third quarter.
The company will hold its quarterly call with investors at 8 a.m. ET.
