At the end of the March, Spotify reached a new high of 75 million subscribers, but now they have issued their first earnings report to seems they have not met Wall Street expectations.
Spotify announced their revenue was at $1.36 billion and that they have had an increase of 45% over the period of one year. Upon announcing these figures, the firm’s stocks fell by 10% to as low as $153.50. Before the announcement shares had jumped more than 3%, however, despite the figures being in line with the revenues and user growth reports, it seems Wall Street was disappointed.
According to recent figures, Apple Music has 40 million subscribers, almost 50% less than Spotify, but is gaining subscribers at a rate of 5% a month. This could mean Apple Music will overtake Spotify this summer.
Spotify, which was valued at almost $30 billion, is still losing money. These new figures show the company is making progress towards making a profit, but it still has a long way to go.