Key points:
- Spotify reported earnings before the bell
- Despite missing earnings expectations it topped revenue expectations
- Spotify shares are up 6% premarket
Spotify (NYSE: SPOT) shares have rallied over 6% premarket Wednesday, July 27, after the company posted earnings for its latest quarter, topping revenue expectations.
Monthly active users rose 19% from 365 million in Q2 last year to 433 million this year, while premium subscribers also increased from 165 million in Q2 2021 to 188 million in Q2 this year, a 14% increase.
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“Nearly all of our key metrics surpassed guidance in Q2'22, led by MAU and Subscriber outperformance, healthy Revenue growth and a modestly better Operating Loss,” Spotify said in its report.
Revenue came in at €2.86 billion, up 23% year-over-year, while the company reported a loss per share of €0.85. Spotify beat revenue expectations of €2.33 billion but missed earnings forecasts, with analysts expecting a loss per share of €0.19.
Looking ahead, the music streaming platform expects Q3 revenue to be €3 billion, while it expects to report an operating loss of €218 million. Premium subscribers are expected to climb to 194 million, representing a 6 million increase, with monthly actiusers rising by 17 million to 450 million.
Spotify also announced it will reduce hiring growth for the back half of 2022 by 25% and will be monitoring macroeconomic conditions.
