Spotify Technology Earnings: SPOT Stock Slips 5% on Q4 Misses

SPOT was nowhere close to EPS estimates

Spotify Technology (NYSE:SPOT) earnings for the music streaming company’s fourth quarter of 2019 have SPOT stock falling on Wednesday. This comes from its losses per share of -$1.25. That’s much worse than Wall Street’s estimate of -25 cents. Revenue of $2.04 billion also misses analysts’ estimates of $2.09 billion.

Spotify Technology Earnings: SPOT Stock Slips 5% on Q4 Misses
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Here are some additional highlights from the most recent Spotify Technology earnings report.

  • Per-share losses are a switch from SPOT’s earnings per share of 40 cents in Q4 2018.
  • Revenue for the quarter is sitting 23.64% higher than the $1.65 billion from the same period of the year prior.
  • Operating loss of about -$84.65 million is a drop from an operating income of $103.35 million from the fourth quarter of 2018.
  • The Spotify Technology earnings report also has net loss coming in at -$229.78 million.
  • That’s not a good number when compared to its net income of $485.94 million from the same time last year.

The Spotify Technology earnings report includes this message for SPOT stock investors.

“For the third consecutive quarter, total MAU growth accelerated while Subscribers, Revenue, and Gross Margin all met or exceeded our expectations. We continue to see exponential growth in podcast hours streamed (up approximately 200% Y/Y) and are now seeing clear indications that podcast usage is driving increased overall engagement and retention.”

The Spotify Technology earnings report also includes its outlook for 2020. The company is expecting revenue to range from $8.88 billion to $9.32 billion. Wall Street’s estimate is for revenue of $9.31 billion during the year.

SPOT stock was down 4.92% as of Wednesday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/02/spotify-technology-earnings-hit-spot-stock-hard/.

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