Shares of Spotify rose in pre-market trading on Tuesday even as the audio streaming service company swung to a loss in Q1 with a diluted loss of €1.16 per share versus earnings of €0.21 per share in the same period last year but narrower than analysts’ estimates of a loss of €0.46 per share.
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The company’s total revenues soared by 14% year-over-year to €3 billion but missed analysts’ expectations by €90 million. Spotify’s MAU’s reached 515 million in Q1, up by 22% year-over-year while premium subscribers grew 15% year-over-year to 210 million with “outperformance across all regions, led by Europe and Latin America.”
Looking forward, management now expects to add 15 million net new Monthly Active Users (MAUs) in the second quarter and has projected MAUs of 530 million. Spotify has projected revenues of €3.2 billion in Q2 that assumes a currency headwind of 300 bps to year-over-year growth due to currency exchange fluctuations. The company has projected an operating loss of €129 million in the second quarter.
Analysts are cautiously optimistic about SPOT stock with a Moderate Buy consensus rating based on 16 Buys and six Holds.
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