Spotify shares fall 14% on revenue miss and weak guidance

Shares of Spotify closed down 14% Tuesday aft the institution released second-quarter results that missed analysts' estimates for gross and offered weaker-than-expected guidance.

Here's however the institution did:

Revenue was up 11% twelvemonth implicit twelvemonth from 2.86 cardinal euros ($3.16 billion). Spotify posted a nonaccomplishment per stock of 85 euro cents successful its Q2 2022 report. It said it expects to study full gross of 3.3 cardinal euros for its 3rd quarter, down from the 3.4 cardinal euros expected by analysts according to StreetAccount.

The euphony streaming institution reported 551 cardinal monthly progressive users for the quarter, up 27% twelvemonth implicit year. There were 36 cardinal nett additions to monthly progressive users during the quarter. Spotify besides reported 220 cardinal paid subscribers, up 17% from a twelvemonth ago.

In its first-quarter report, the institution said it expected to adhd astir 15 cardinal caller monthly progressive users successful Q2, bringing its full to 530 million. It had besides expected gross of 3.2 cardinal euros and to study 217 cardinal paid subscribers successful the quarter.

Spotify posted a nett nonaccomplishment of 302 cardinal euros, widening from the 125 cardinal euro nonaccomplishment it posted successful the year-ago quarter.

Spotify is continuing to put successful advertising, and its ad-supported gross grew 12% twelvemonth implicit year. The institution said podcast advertizing gross maturation reaccelerated to much than 30% twelvemonth implicit year.

On Monday, Spotify announced plans to summation the price of its Premium subscription offerings arsenic overmuch arsenic $2, which translates to a 20% emergence for immoderate plans. The institution said that the marketplace scenery has "continued to evolve" since Spotify launched, and that the changes volition assistance the institution "continue to present worth to fans and artists," according to a blog post.

In the U.S., Spotify's Premium Individual offering present costs $10.99, up from $9.99, and the terms of its Premium Duo program changed to $14.99, up from $12.99. The company's Premium Family program is present priced astatine $16.99, up from $15.99, and the Student offering costs $5.99, up from $4.99.

Spotify said successful its study Tuesday that the terms increases are expected to person "minimal impact" connected the company's full gross successful the 3rd quarter.