The streaming giant’s forecast of 788 million monthly active users falls short of the 793.5 million estimate for Q3.
Spotify’s stock fell 6% in early trading after the company projected third-quarter monthly active users (MAUs) at 788 million, below the 793.5 million consensus. Operating income is also expected to miss estimates at $771 million versus $784 million forecasted.
Second-quarter revenue rose 14% year-over-year to $5.5 billion, slightly below expectations, while premium subscribers reached 300 million, exceeding estimates. The company recently raised subscription prices to bolster profitability, but growth concerns persist.
Shares are down 15% year-to-date and 37% from last year’s peak as investors recalibrate expectations.