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
