Spotify today released its financial results for the first quarter of 2022. There are some disappointments and this is reflected in the share price which has fallen on the stock market.
Spotify’s first quarter results
Spotify’s revenue was 2.66 billion euros, up 24% from the same period a year ago. This is a little better than analysts’ expectations, they were aiming for 2.62 billion euros. In detail, the revenue generated by advertising (with the free formula) was 282 million euros. That’s 11% of total revenue, and the streaming service says it’s the largest first quarter ever for that segment. Despite everything, analysts expected 304.1 million euros.
On the other hand, the net profit is 131 million euros, against a loss of 39 million euros last year in the same period. Earnings per share were 21 cents, where analysts had expected a loss of 24 cents.
For the rest, Spotify now has 422 million users, up 19% year on year. There are 182 million premium subscribers, up 15%. On the other hand, the streaming service disappoints for the current quarter estimates expecting to have 428 million users in total, including 187 million paying subscribers. This reflects a loss related to the closure of its Russian operations as well as the full cancellation of its service interruption compensation in March.
The action is down 10.53% on the stock market at 98.94 dollars.