Spotify exceeds subscriber projection in the 2nd quarter, but falls short in profit

The Stockholm-based company added 7 million premium subscribers in the quarter ended June, above the consensus of 6.1 million. As a result, the 2nd quarter ended with 300 million paid subscribers worldwide, an increase of 9% compared to a year before.

Spotify had 777 million monthly active users in the second quarter, an increase of 12% year-on-year, but slightly below Wall Street's target of 777.5 million. The platform offers an ad-supported service in addition to the ad-free subscription.

Spotify earned the equivalent of US$3.01 per share, with revenue of US$5.51 billion in the second quarter. Analysts surveyed by FactSet expected US$3.18 per share, with revenue of US$5.51 billion. In the same period last year, Spotify had a loss equivalent to US$0.48 per share, with revenue of US$4.83 billion. The company publishes its results in euros.

For the third quarter, Spotify projected revenue of US$5.76 billion, above the consensus of US$5.67 billion. A year earlier, revenue was US$4.91 billion.

For the quarter ending in September, the company expects to add 5 million premium subscribers, totaling 305 million, and end the period with 788 million monthly active users. Analysts projected 304.9 million premium subscribers and 792.9 million monthly active users in the third quarter.

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