July 26, 2023: On Monday, Shares of Spotify decrease 6% in premarket trading after the company fired second-quarter results that missed analysts’ estimates for earnings and offered weaker-than-expected guidance.
Revenue increased 11% yearly from 2.86 billion euros ($3.16 billion). Spotify posted a loss per share of 85 euro cents in its Q2 2022 report. According to Street Account, it expects to report total revenue of 3.3 billion euros for its third quarter, down from the 3.4 billion euros expected by analysts.
The music flowing company reported 551 million monthly active users for the quarter, up 27% year over year. There were 36 million net additions to monthly active users during the quarter. Spotify also reported 220 million paid subscribers, up 17% from a year ago.
In its first-quarter report, the company expected to add approximately 15 million new monthly active users in Q2, bringing its total to 530 million. It expected revenue of 3.2 billion euros to report 217 million paid subscribers in the quarter.
Spotify posted a net loss of 302 million euros, widening from the 125-million-euro loss it posted in the year-ago quarter.
Spotify continues to invest in advertising, and its ad-supported revenue grew 12% yearly. The company said podcast advertising revenue growth reaccelerated to more than 30% year over year.
On Monday, Spotify announced plans to increase the price of its Premium subscription offerings by as much as $2, which translates to a 20% rise for some projects. The company said that the market landscape has “persisted to evolve” since Spotify launched and that the changes will help the company “continue to deliver value to fans and artists,” according to a blog post.
In the U.S., Spotify’s Premium Individual offering now costs $10.99, up from $9.99, and its Premium Duo plan changed to $14.99, up from $12.99. The Premium Family plan is now priced at $16.99, up from $15.99, and the Student offering costs $5.99, up from $4.99.
On Tuesday, Spotify said in its report that the price increases are expected to have “minimal impact” on the company’s total revenue in the third quarter.
Corporate leaders often navigate turbulent waters where failure is not just a possibility but an inevitable part of the journey …
Corporate leaders play a pivotal role in shaping organizational cultures that embrace diversity and foster inclusivity. How can these …
Corporate leaders occupy a unique vantage point in the business world, offering insights and guidance shaped by their …
Corporate leaders today stand at the nexus of unprecedented technological evolution, where digital transformation reshapes industries and redefines …
Corporate leaders stand at the helm of their organizations, often tasked with making decisions that can steer their companies toward …
Corporate leaders are often tested by crises that threaten the very foundation of their organizations. How do these leaders navigate turbulent …
Davco, a leading provider of innovative solutions for the construction industry, has entered into a strategic partnership with …
Invesco, a prominent global investment management firm, has launched a new exchange-traded fund (ETF) designed to capitalize …
A bill has been introduced in the Texas House of Representatives proposing the establishment of a strategic Bitcoin reserve. This groundbreaking …
Amazon has announced a strategic partnership with Intuit to provide its millions of third-party sellers access to QuickBooks …
Leave us a message
Subscribe
Fill the form our team will contact you
Advertise with us
Fill the form our team will contact you
