Spotify Stock (SPOT) Falls after Q1 2023 Earnings
Spotify Stock Performance
Spotify (SPOT) shares fell over 6% in extended trading on Tuesday after the music streaming giant reported first-quarter results that missed analysts' expectations.Spotify reported a loss per share of €0.25, wider than the €0.22 loss per share expected by analysts. Revenue also came in below expectations, at €2.66 billion compared to the €2.69 billion consensus estimate.
Spotify's Q1 Results
Spotify's revenue grew by 24% year-over-year to €2.66 billion. However, this growth was slower than the 27% growth rate in the previous quarter.
The company's monthly active users (MAUs) grew by 19% to 422 million, in line with analyst expectations. Premium subscribers also increased by 15% to 182 million.
Spotify's gross margin declined by 1.2 percentage points to 24.7%, driven by higher content acquisition costs.
Analyst Commentary
Analysts were mixed in their reaction to Spotify's results. Some analysts cited the miss on earnings and revenue as a concern, while others pointed to the strong growth in MAUs and premium subscribers as a positive sign.
Overall, analysts remain bullish on Spotify's long-term prospects. The company is a leader in the music streaming market and is well-positioned to benefit from the continued growth of the industry.
