Spotify (NYSE:SPOT) earnings for first quarter of 2020 have SPOT stock riding higher on Wednesday. This comes after reporting losses per share of 20 cents. That’s much better than Wall Street’s estimate of 45 cents per share. The music streaming company’s revenue of 1.85 billion euros is also above analysts’ estimates of 1.71 billion euros.
Here are some additional highlights from the most recent Spotify earnings report.
- Per-share losses are 75% better than the 79 cents from the same time last year.
- Revenue comes in 22% higher than the 1.51 billion euros reported in the first quarter of 2019.
- Operating loss of 17 million euros is an improvement year-over-year from 47 million euros.
- The Spotify earnings report also has net income coming in at 1 million euros.
- That’s much better than the company’s net loss of 142 million euros.
- SPOT also saw its premium subscribers increase 31% to 130 million.
Spotify said this in a letter to shareholders.
“Despite the global uncertainty around COVID-19 in Q1, our business met or exceeded our forecast for all major metrics. For Q2 and the remainder of the year, our outlook for most of our key performance indicators has remained unchanged with the exception of revenue where a slowdown in advertising and significant changes in currency rates are having an impact.”
Spotify’s revenue update has it changing its 2020 guidance. It now expects revenue for the year to range from 7.65 billion euros to 8.05 billion euros. Wall Street’s estimate is for revenue of 7.55 billion euros in 2020.
SPOT stock was up 11.5% as of Wednesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
