Spotify Technology SA (NYSE:SPOT) unveiled its first quarterly earnings report since going public late today, yielding mixed results.
The music streaming service provider posted revenue of 1.14 billion euros ($1.37 billion) for its first quarter of fiscal 2018, better than its year-ago revenue of 902 million euros ($1.09 billion). Analysts were calling for revenue of 1.14 billion euros ($1.37 billion), according to data compiled by Thomson Reuters.
Spotify also had 75 million paid subscribers in line, which was below the 75.1 million paid subscribers that analysts were expecting the company to have, according to data compiled by FactSet. The company’s ad-supported monthly active user base was slightly better than projected at 99 million versus the 98 million that the Wall Street consensus estimate predicted, according to FactSet.
For its second quarter of fiscal 2018, the company predicts that its revenue will be in the range of 1.1 billion euros to 1.3 billion euros ($1.32 billion to $1.56 billion), which has a midpoint forecast that is on the lower end of the 1.29 billion euros ($1.55 billion) that Wall Street is calling for, according to Thomson Reuters.
Spotify is also projecting that it will have 79 million to 83 million subscribers by the end of the period, which has a midpoint outlook that is 81 million. Analysts are calling for the company to attain 82.1 million subscribers, according to FactSet.
SPOT stock fell about 7.7% after the bell Wednesday as the company underwhelmed in its quarterly results.
