LONDON/BENGALURU (Reuters) – Music streaming leader Spotify Technology on Wednesday posted quarterly revenue just below Wall Street’s average estimate in its first report as a publicly traded company, sending its shares down 9 percent in after-hours trading.
The Swedish company, which began trading in an unorthodox initial public offering a month ago, reported first-quarter revenue of 1.139 billion euros ($1.36 billion), up 26 percent from a year earlier, or 37 percent excluding currency effects.
While the revenue was broadly in line with the 1.10 billion euros to 1.15 billion euros the company had forecast, it was just short of the 1.143 billion euro consensus estimate among 13 analysts tracked by Thomson Reuters I/B/E/S.
The company did report a first-quarter operating loss of 41 million euros, a sharp improvement from a loss of 139 million euros a year ago.
Spotify said it had 170 million active monthly users at the end of March, up 30 percent from the year-ago quarter. This included 75 million paying subscribers, up 45 percent year-on-year, from which the company generates the vast majority of its revenue.
The 75 million subscriber figure was slightly above the 74.43 million consensus estimate of analysts polled by Thomson Reuters.
($1 = 0.8364 euros)
Reporting by Eric Auchard in London and Munsif Vengattil in Bengaluru; Additional reporting by Olof Swahnberg and Helena Soderpalm in Stockholm; Editing by Bill Rigby