Key insights
- Spotify's Q1 results showed a slight revenue beat and EPS beat, driven by subscriber growth despite US price hikes. However, Q2 guidance for earnings and premium subscribers fell short of Wall Street expectations, similar to Netflix's recent earnings reaction. This weaker guidance is likely to negatively impact Spotify's stock price and potentially weigh on broader tech sentiment.
Here are the numbers
EPS expected 3.46 Actual 4.04
Revenue Expected 5.3 billion in revenue Actual 5.30 billion
Some other key metrics were gaining 3 million Premium subscribers in the period to reach 293 million total, notwithstanding its recent price increases in the U.S.
Total monthly active users (including both free and paid) climbed 12% year over year to 761 million, slightly ahead of its prior guidance of 759 million.
The company’s Q1 gross margin of 33.0% was its second-highest to date, up from 31.6% a year prior.
Spotify forecast second-quarter earnings and premium subscribers below Wall Street estimates on Tuesday.
Street isn't happy with guidance sort of like Netflix and their earnings.
Disclosure I own spotify shares