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Share Spotify Sinked Wednesday after the company reported Revenue for the first quarter of 2022..
Stock prices fell 10% in the morning as tech stocks continued to have a tough earnings season.
The key numbers are:
- Profit per share: Estimated loss of 21 euro cents vs. 24 euro cents, according to Refinitiv
- Revenue: € 2.66 billion vs. € 2.62 billion per refinitiv
The company, which has invested heavily in the podcasting business and is trying to expand its advertising in this area, said its advertising support revenue was € 182 million. That’s 11% of total sales, and according to the company, it was the largest first quarter ever in the segment. Still, according to FactSet, it missed analysts’ forecast of € 304.1 million in ad support revenue.
Spotify ended the quarter with 182 million paying subscribers.This is a 15% year-on-year increase, but below the original subscribers 183 million forecasts.. According to the company, the withdrawal from Russia has lost 1.5 million subscribers. Revenue from subscriptions increased 23% year-on-year to € 2.38 billion.
Spotify reached 422 million MAU in the first quarter, up 19% year-on-year and surpassing its own guidance by 4 million. According to FactSet consensus, it exceeds analysts’ expectations.
Spotify’s platform had 4 million podcasts at the end of the quarter, starting from 3.6 million in the fourth quarter of 2021. The increase in the number of monthly active users (MAUs) using podcasts continues to outpace MAU’s total growth. The overall time spent podcast share on the platform reached a record high, the company said.
According to Spotify, when the service temporarily stopped in March and users automatically logged out of the platform, about 3 million users could have created new accounts and logged in again. According to the company, in April, a month after the outage, it saw a reversal in its profits.
Spotify expects monthly active users to reach 428 million in the second quarter. This reflects the loss from the closure of the business in Russia and the complete reversal of the benefits of the March outage. In terms of total paid subscribers, Spotify expects to reach a total of 187 million.
