Daniel Ek, ceo and co-founder of Spotify AB, means a photograph following a news conference in Tokyo, Japan, on Thursday, Sept. 29, 2016.
Akio Kon | Bloomberg | Getty Images
Here’s the way the company did:
- Earnings per share: A lack of 85 euro cents per share vs. around lack of 63 euro cents per share needlessly to say by analysts, in accordance with Refinitiv
- Revenue: 2.86 billion euros vs. 2.81 billion expected by analysts, in accordance with Refinitiv
Spotify has continued to purchase its advertising, and ad-supported revenue grew 31% year-over-year to 360 million euros, reaching an all-time most of 13% of the full total revenue for the quarter.
Regardless of the closure of its Russian operations, Spotify reported 433 million monthly active users in its second quarter, up 19% year-over-year and 5 million above guidance. The business said this growth could be related to successful marketing campaigns, Gen Z strength in Latin America and account reactivations in Europe.
Paid subscriber growth also beat guidance by way of a million users, growing 14% year-over-year to 188 million.
“We’re seeing several markets trending before our forecasts,” Spotify CEO Daniel Ek said on the business’s earnings call, reiterating plans to proactively reduce headcount by 25%. Ek said that although he could be preparing for what to get worse, he could be optimistic predicated on what he could be currently seeing.
Spotify expects to include approximately 17 million new monthly active users in the 3rd quarter, bringing its total to 450 million, the business said. It expects to create 194 million paid subscribers in the quarter, implying a rise of 6 million. The business anticipates its revenue to improve to 3 billion euros.
“We continue steadily to monitor the global macro outlook, but up to now, have observed no real effect on our user or subscriber outlook,” CFO Paul Vogel said on the decision. “Specifically, we be prepared to see another quarter of accelerating MAU net adds and expect subscriber net additions much like Q3 of this past year.