Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Spotify Technology SAs (SPOT) second-quarter revenue, reported on Wednesday, outstripped Wall Street estimates, supported by subscriber growth in the companys premium business. On the other hand, quarterly loss was larger than expected.

Spotify shares closed lower for the sixth time in the past twelve trading sessions in New York on Wednesday. The stock edged down 0.17% ($0.26) to $154.94, after touching an intraday low at $145.67, or a price level not seen since July 22nd ($143.82).

Shares of Spotify Technology SA have risen 36.51% so far this year, following a 21.30% drop in 2018.

Total revenue went up 31% year-on-year to EUR 1.67 billion during the quarter ended on June 30th, while exceeding the median analyst estimate of EUR 1.64 billion.

Revenue from Spotifys premium business surged 31% year-on-year to EUR 1.502 billion during the second quarter, as its premium subscribers grew 31% from a year ago to reach 108 million internationally. Analysts on average had expected 108.5 million premium subscribers.

At the same time, revenue from its ad-supported business rose 34% year-on-year to EUR 165 million.

The music streaming company reported a 29% annual growth in its monthly active users to a total of 232 million during the quarter. In comparison, Spotify had earlier forecast monthly active users within the range of 222 million to 228 million.

The companys total operating expenses went up 4% year-on-year to EUR 437 million during the past quarter.

Spotifys net cash flow from operating activities was reported at EUR 90 million during the second quarter, while its free cash flow was reported at EUR 50 million.

Meanwhile, net loss attributable to shareholders shrank to EUR 76 million (EUR 0.42 per share) during the quarter ended on June 30th from EUR 394 million (EUR 2.20 per share) in the same period a year ago. The median forecast by analysts had pointed to a loss of EUR 0.32 per share.

Spotify also said it expected total premium subscribers to fall within the range of 110 million to 114 million during the third quarter. The company now projects total revenue of between EUR 1.57 billion to EUR 1.77 billion in Q3.

Analyst stock price forecast and recommendation

According to CNN Money, the 25 analysts, offering 12-month forecasts regarding Spotify Technology SA’s stock price, have a median target of $154.67, with a high estimate of $206.62 and a low estimate of $89.27. The median estimate represents a 0.18% downside compared to the closing price of $154.94 on July 31st.

The same media also reported that at least 16 out of 27 surveyed investment analysts had rated Spotify Technology SA’s stock as “Buy”, while 6 – as “Hold”. On the other hand, 4 analysts had recommended selling the stock.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • USD/CHF off session highs in calm tradeUSD/CHF off session highs in calm trade US dollar pulled back from session highs against the Swiss franc on Friday, as demand for the greenback was under the influence of the comments made by FED Chairman Ben Bernanke during his testimony in front of the Senate Banking Committee […]
  • Commodities trading outlook: crude oil and natural gas futuresCommodities trading outlook: crude oil and natural gas futures WTI and Brent futures were lower during afternoon trade in Europe today, as the US posted weekly readings on oil inventories. Meanwhile, natural gas futures were slightly lower, ahead of the EIA weekly gas report on Thursday.West Texas […]
  • Oil weekly recap, December 23 – December 27Oil weekly recap, December 23 – December 27 West Texas Intermediate rose to a 2-1/2 month high on Friday and Brent settled at the highest level in four weeks after the Energy Information Administration reported a fourth consecutive weekly decline in US crude inventories in the seven […]
  • Forex Market: EUR/USD pressured by talk of new sanctions on Russia, US 2-year bond yields surge to 2.5%Forex Market: EUR/USD pressured by talk of new sanctions on Russia, US 2-year bond yields surge to 2.5% EUR/USD extended a two-day streak of losses on Monday, as US bond yields surged on expectations of sharp interest rate hikes by the Federal Reserve, while the common currency was pressured by talk of fresh European sanctions on […]
  • Telefonica SA share price down, first-quarter profit trails estimatesTelefonica SA share price down, first-quarter profit trails estimates Telefonica SA, Europes second-largest telecommunications company behind Vodafone Plc and biggest investor in Latin American telecommunications, reported worse-than-expected net profit in the first quarter, dragged by a continuing decline in […]
  • Gold weekly recap, June 16 – June 20Gold weekly recap, June 16 – June 20 Gold futures logged the biggest weekly increase in four months on Friday. The Fed’s announcement of lower interest rates for a “considerable time” and escalating violence in Iraq pushed havens to multi-month highs, while stocks were also at […]