Spotify: shares drop as growth fails to impress
(CercleFinance.com) - Spotify Technology reported an increase in both users, revenue and margins on Thursday, but the numbers failed to impress investors, who sent the shares down over 8% in early morning trading on Thursday.
The music-streaming company said total monthly active users (MAU) grew by 28% to reach 191 million at the end of the third quarter, thanks to growth in emerging markets such as Latin America.
Premium subscribers totaled 87 million at the end of the quarter, up 40%, pushing total quarterly revenue up 31% to 1.35 billion euros.
The Stockholm-based company also said that its gross margin rose to 25.3% in the past quarter, from 22.3% a year earlier, meaning that its operating loss narrowed to just 6 million euros, above lower end of its guidance range, compared to 73 million euros in the third quarter of 2017.
Spotify aims to keep on growing these numbers: for the fourth quarter, the group forecasts between 199 and 206 million active users and 93-96 million premium subscribers, with revenue expected to rise by 18%-to-35% to 1.35-1.55 billion euros.
Investors did not seem too impressed: Spotify shares dropped 8.1% to 137.5 dollars in early morning trading on the NYSE Thursday.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The music-streaming company said total monthly active users (MAU) grew by 28% to reach 191 million at the end of the third quarter, thanks to growth in emerging markets such as Latin America.
Premium subscribers totaled 87 million at the end of the quarter, up 40%, pushing total quarterly revenue up 31% to 1.35 billion euros.
The Stockholm-based company also said that its gross margin rose to 25.3% in the past quarter, from 22.3% a year earlier, meaning that its operating loss narrowed to just 6 million euros, above lower end of its guidance range, compared to 73 million euros in the third quarter of 2017.
Spotify aims to keep on growing these numbers: for the fourth quarter, the group forecasts between 199 and 206 million active users and 93-96 million premium subscribers, with revenue expected to rise by 18%-to-35% to 1.35-1.55 billion euros.
Investors did not seem too impressed: Spotify shares dropped 8.1% to 137.5 dollars in early morning trading on the NYSE Thursday.
Copyright (c) 2018 CercleFinance.com. All rights reserved.