Spotify (SPOT) earnings

shares Spotify It fell 6% in pre-market trading on Tuesday after the company issued a Second quarter results That came in below analyst estimates for revenue and provided weaker-than-expected guidance.

Here’s how the company did:

• share loss: A loss of 1.55 euros is incomparable with the estimates
• he won3.18 billion euros, compared to 3.21 billion euros expected by analysts, according to Refinitiv

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Revenue was up 11% year-on-year from €2.86 billion ($3.16 billion). Spotify reported a loss per share of 85 euro cents in its report for the second quarter of 2022. It said it expects to report total revenue of €3.3 billion for the third quarter, down from the €3.4 billion forecast by analysts according to StreetAccount.

The music streaming company reported 551 million monthly active users for the quarter, up 27% year-over-year. There were 36 million net monthly active users added during the quarter. Spotify also reported 220 million paid subscribers, up 17% from last year.

in that First Quarter Report, the company said it expects to add approximately 15 million new active users per month in the second quarter, bringing the total number of users to 530 million. It also forecast revenue of 3.2 billion euros and logs 217 million paying subscribers in the quarter.

Spotify reported a net loss of €302m, expanding from a €125m loss it posted in last year a quarter.

Spotify continues to invest in advertising, and its ad-supported revenue grew 12% year-over-year. The company said podcast ad revenue growth accelerated to more than 30% year-over-year.

On Monday, Spotify announced plans to increase the price of premium subscription offerings by $2, which translates to a 20% increase for some plans. The company said the market landscape has “continued to evolve” since the launch of Spotify, and that the changes will help the company “continue to deliver value to fans and artists,” according to the company. blog post.

In the US, Spotify’s Premium Single View now costs $10.99, up from $9.99, and the price of the Premium Duo plan has changed to $14.99, up from $12.99. The company’s premium family plan is now priced at $16.99, up from $15.99, and the student view costs $5.99, up from $4.99.

Spotify said in its report on Tuesday that the price increases are expected to have a “minimal impact” on the company’s total revenue in the third quarter.