Shares of Spotify Technology S.A. (SPOT) dropped 4.5% in premarket trading Wednesday, after the Luxembourg-based music streaming service reported a wider-than-expected loss and revenue that came up a bit shy, although active users grew more than forecast. The net loss widened to EUR356 million ($418.4 million), or EUR1.91 a share, from a loss of EUR76 million, or EUR0.42 a share, in the year-ago period. The FactSet consensus for losses per share was EUR0.35. Revenue rose 13% to EUR1.89 billion ($2.22 billion) but missed expectations of EUR1.92 billion. Monthly active users (MAUs) increased 29% to 299 million, above the FactSet consensus of 298.3 million, while premium subscribers grew 27% to 138 million to top expectations of 137.4 million. There was some weakness in some countries users early in the quarter, as a result of the COVID-19 pandemic, but results rebounded "significantly" in June. North America growth rose more than expected, the company said, as retention continued to improve. The company expects third-quarter MAUs of 312 million to 317 million, surrounding the FactSet consensus of 315.2 million. The stock has dropped 38.3% year to date through Tuesday, while the S&P 500 has slipped 0.4%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 29, 2020 06:16 ET (10:16 GMT)
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