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Spotify (SPOT) earnings Q1 2022

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The shares of SpotifyThe shares fell Wednesday, after the company announced its financial results. first-quarter 2022 earnings.

The morning’s tough earnings season was reflected in the 10% drop in stock.

Below are some key numbers

  • Earnings per share:21 eurocents per an estimate loss of 24 euros cents. Refinitiv
  • Revenue: 2.66 billion euros vs 2.62 billion euros, per Refinitiv

Company, which is heavily investing in podcasting, reported that its ad supported revenue reached 282 millions euros. It accounted for 11%, or 13% of total revenue. This was the biggest quarter in its history. FactSet reported that it still fell short of analyst expectations for 304.1 million euros in revenue from ad-supported sales.

Spotify closed the quarter with 182,000,000 paid subscribers. This is a 15% increase year-over-year, but still below its initial number. forecast of 183 million. According to the company, 1.5 million subscribers were lost due to Russia’s exit. Subscription revenue grew 23% annually to 2.38 Billion Euros.

Spotify’s first quarter saw 422 million monthly active users (MAUs) increase by 19%, surpassing its guidance of 4 million. A FactSet consensus also indicated that it beat analysts’ expectations.

Spotify had 4 million podcasts in its service at the close of the quarter. This is up from 3.6million in the fourth quarter (2021). The company stated that the growth in monthly active users (or MAUs) who engaged with the podcasts has continued to exceed total MAU growth. Additionally, podcast share of overall listening hours reached an all time high.

Spotify claimed that 3 million Spotify users created new accounts during the March service outage, which caused them to lose their login credentials. It claimed that the benefit was reversed in April after the outage.

Spotify is expecting to see 428,000,000 monthly active users in the second quarter. The loss from closing its Russian operations, as well as the total reversal and cancellation of the March service outage benefit, as well as the loss from Spotify’s Russian operations being closed down, are all factors that will impact its 2nd quarter. Spotify’s total paid subscribers is expected to be 187 millions.

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