Spotify (SPOT) announced weaker than expected second quarter results and shares fell by 6 percent, in premarket trading on Tuesday. The music streaming platform missed the revenue estimates of analysts and also offered guidance that was weaker than expected. However, the number of users was 27 percent higher year over year.
The loss per share was 1.55 Euros. According to Refinitiv, analysts estimated a revenue of 3.21 billion Euros. However, the company reported a revenue of 3.18 billion Euros.
Spotify said that it is expecting a revenue of 3.3 billion in the next quarter. However, this is also lower than analysts’ estimates as Street Account put its expected third-quarter revenue estimate at 3.4 billion Euros.
The number of users on the music streaming platform increased in the second quarter. Spotify said that there were 551 active users in this quarter and this is a 27 percent increase when compared with the same quarter last year. Net additions of active users in each month in this quarter amounted to 36 million. It also said that the number of its paid subscribers increased to 220 million. This is a 17 percent increase year over year.
On Monday, the podcast and music streaming platform increased the price of its Premium subscription. Spotify said that the market “continued to evolve” since the launch of Spotify and the changes by the company would help “deliver value to fans and artists. On Tuesday, Spotify said that the hike in its plans will have a “minimal impact” on its third quarter revenue.
Spotify’s new paid Premium plans in the U.S. are as follows:
Premium Individual plan costs $10.99 compared to the earlier rate of $9.99.
The Premium Duo plan costs $14.99 compared to the earlier $12.99.
Premium Family plan costs $16.99 compared to the earlier $15.99.
The student plan costs $5.99 compared to the earlier $4.99.
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