Why Spotify Technology Shares Crashed on Wednesday
Shares of Spotify Technology (NYSE: SPOT) fell as much as 10.1% on Wednesday, following the company's second-quarter earnings report. The results exceeded most of Wall Street's expectations, but investors were quick to focus on the business update's disappointing details instead.
Spotify's second-quarter sales rose 23% year over year, landing at $2.75 billion. Your average analyst would have settled for $2.23 billion. On the bottom line, net losses shrank from $2.26 to $0.22 per diluted share. The number of monthly active users (MAUs) increased 22% year over year to 365 million. Premium subscriber growth clocked in at 20% while ad-supported MAUs rose by 24%.
The MAU figure came in just below the bottom end of management's guidance range for the quarter, while premium subscribers and top-line revenue nestled up to the top end of their respective guidance ranges instead.
Source Fool.com
