- Spotify's shares continued to fall by 14% after the company released its second-quarter results, which showed weaker-than-expected guidance and missed analysts' revenue estimates. The company reported revenue of 3.18 billion euros, up 11% from the previous year but falling short of the 3.21 billion euros expected by analysts. Additionally, Spotify's loss per share was 1.55 euros.
- Despite the revenue miss and weak guidance, Spotify did experience growth in its user base. The music streaming company reported 551 million monthly active users, representing a 27% year-over-year increase. It also saw a significant rise in paid subscribers, with 220 million users, up 17% from the previous year.
Why it matters
The significance of this news lies in the mixed performance of Spotify's financials. While the company showed growth in its user metrics, the lower-than-expected revenue and uncertain guidance led to a sharp decline in its stock value. The drop in share value indicates that the market has reacted negatively to the results, and it may prompt Spotify to reassess its strategies to regain investor confidence and drive future growth.