Spotify misses earnings expectations with $1.46 per share report
- Spotify reported third-quarter earnings at $1.46 per share, which missed estimates.
- Sales were $3.99 billion, also lower than the analyst consensus of $4.02 billion.
- Despite the earnings miss, user growth was strong, indicating positive future potential.
Spotify Technology S.A. released its third-quarter results recently, revealing key performance figures that fell short of analyst expectations. The company reported earnings of $1.46 per share, which was under the expected $1.76, while its sales reached $3.99 billion, missing the $4.02 billion forecast. Despite these misses, Spotify experienced a year-over-year sales increase from $3.65 billion. In terms of user growth, Spotify added 14 million monthly average users, exceeding its guidance by one million, and six million new subscribers, also surpassing expectations. Premium subscribers rose by 12% year-over-year, totaling 252 million, which indicates growth across all reported regions. The company communicated a positive outlook in a letter to shareholders, noting that their key performance indicators met or surpassed guidance, and profitability achieved record levels, showcasing resilience despite lower-than-expected earnings. As a result of these mixed financial outcomes, Spotify shares were up 7.55% in after-hours trading, reflecting investor optimism based on user growth and future potential despite the earnings miss.