Spotify's stock tumbles 13% as subscriber growth falls short of expectations
Investors pummeled shares of giant music streamer Spotify Tuesday on a softer-than-expected outlook for premium subscribers in the current second quarter - despite solid financials for the three months ended in March.
The stock is down over 13% after the company anticipated 299 million total premium subscribers by June, an addition of about six million. Wall Street was looking for over 300 million. The miss follows a February price increase for individual premium subscriptions in the U.S. by a buck to $12.99 a month.
The March quarter ended with 293 premium subs, in line with company guidance. Total monthly active users (or MAUs) of 761 million were higher than the company had guided, up from 751 million in the fourth quarter and 12% higher from 678 million the year earlier.
Overall quarterly numbers were solid with operating income of 715 million euros ($837 million) on revenue up 8% euros 4.5 million ($5.27 billion). The Stockholm-based company celebrates its 20th anniversary this month. It's planning an investor day May 21 investor day in New York.
