Spotify (NYSE:SPOT) shares fell 1.6% in Wednesday’s trading after the Swedish music streaming company posted a wider-than-anticipated loss for Q2 and failed to live up to expectations on revenue.
Spotify logged a €1.91 per share loss for the period, which was much wider than the €0.35 loss forecast by Wall Street analysts.
Revenue also underwhelmed despite climbing 13% to €1.89bn in the second quarter.
That figure was €30m less than the pre-report consensus of €1.92bn.
Despite the financial misses, Spotify revealed that its number of monthly active users (MAUs) soared 29% year-over-year to beat expectations.
Paid subscribers also advanced 27% during the same period to 138 million, which also came in ahead of estimates.
In a statement published on Wednesday, the Stockholm-headquartered company said it had “performed well” despite the challenges associated with the global pandemic.
It added: “Excluding the impact of social charges related to the increase in our share price during Q2, all of our key metrics would have finished at or ahead of our expectations.”
While subscriber numbers were up, it was hard for investors to look past the quarterly loss and revenue miss — shares went into reverse (-1.6%) after the first bell on Wednesday.
Spotify stock was trading at $262.61 by around midday.
The company is still confident of increasing its customer base yet further in the coming months.
Spotify forecasts MAUs at between 312 million to 317 million for the third quarter versus the 315.2 million estimates.
It also believes growth in North America will remain strong after retention in the region improved during the second quarter.
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