Spotify shares plummeted 13% after the market opened Tuesday, as soft guidance overshadowed an earnings beat.
The Swedish-music streaming giant stated first-quarter revenue significantly increased to 8% from last year to 4.5 billion euros ($5.3 billion), while monthly active users (MAUs) increased 12% year-on-year to 761 million, both slightly above FactSet projected.
Premium subscribers increased 9% to 293 million, reflecting 3 million quarterly net ads, Spotify stated.
For the current quarter, Spotify expects to add 17 million net users to reach 778 million MAUs. It is likely to grow its premium subscribers by 6 million to 299 million.
While second-quarter MAU guidance was slightly above Wall Street’s expectations, net premium subscribers was likely to grow to just over 300.4 million, according to analysts polled by FactSet.
The guidance is “subject to substantial uncertainty,” Spotify said in an earnings presentation.
Operating income was guided to 630 million euros, while the Street was expecting closer to 680 million euros, per FactSet estimates.
Spotify repeatedly surged prices for its premium subscription in an attempt for enhanced profitability.
In February, Spotify raised the subscription price from $11.99 to $12.99 a month across America.
At Monday’s close, the stock was down 14% year-to-date.
