Spotify Technology SA (SPOT) is feeling the impact of the COVID-19 crisis, but the company posted a far narrower loss than expected Wednesday, and shares surged 14% in morning trading. The company recorded a March-quarter net loss of EUR0.20 a share, whereas analysts surveyed by FactSet expected EUR0.47 a share. Spotify generated a EUR0.79 loss per share a year earlier. Revenue increased to EUR1.85 billion from EUR1.51 billion but came in a bit shy of the FactSet consensus, which modeled EUR1.86. Spotify disclosed that "morning routines have changed significantly" and "every day now looks like the weekend" as users are spending far less time listening to podcasts in their cars. "However, listening time around activities like cooking, doing chores, family time, and relaxing at home have each been up double digits over the past few weeks," the company said in its release. Spotify saw months active users of 286 million in the quarter, above the 283 million analysts had been expecting. Spotify shares are up 13% over the past three months as the S&P 500 has declined 11%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
April 29, 2020 10:29 ET (14:29 GMT)
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