By Elsa Ohlen
Spotify stock dropped despite reporting solid earnings early Tuesday, indicating that investors wanted more from the audio streamer.
In the first quarter, the company reported a 12% increase in premium subscribers, its most profitable type of customer, to 268 million, topping expectations of 265 million, according to FactSet.
Monthly active users, a key industry metric, grew 10% to 678 million, largely in line with expectations for the quarter.
Revenue came in at 4.2 billion euros, also in line with expectations.
Spotify shares dropped 8.7% to $545.77 in early trading.
For the current quarter, Spotify said it expects to reach 689 million monthly active users and 273 million premium subscribers. Analysts had expected Spotify to add 695 million monthly active users and 271 million premium subscribers, according to FactSet.
"The short term may bring some noise, but we remain confident in the long-term story, and the direction we're heading in feels clearer than ever," CEO Daniel Ek said in a statement.
In 2024, Spotify recorded its first full-year profit as price hikes and layoffs boosted margins.
Write to Elsa Ohlen at elsa.ohlen@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 29, 2025 10:19 ET (14:19 GMT)
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