Spotify drops on 11% over the worst day for two years on weak recommendations

Hold Shares on Tuesday decreased by more than 11% in their worst day since July 2023 after A stream of music service fell shortly Wall -Street expectations and placed weak recommendations for the current quarter.

Here’s how the company did compared to LSEG’s estimates:

• Loss for the share: 42 euros of a penny vs. 1.90 euros are expected
• Income: 4.19 billion euro is expected to be 4.26 billion

A Swedish Platform income It increased by 10% of approximately 3.81 billion euros per year. The company has published a pure loss of 86 million euros, or a loss of 42 euros per share, decreasing compared to a net income of 225 euros, or 1.10 euros per share a year ago.

Spotify said higher personnel, marketing and professional services and 115 million euros on what it is called social fees contributed to the result.

The leadership of the third quarter came out of the Wall Street forecast.

The company expects the revenue to reach 4.2 billion euros, compared to the estimate of € 4.47 billion from Streetaccount. Spotify noted that the forecast is 490 bases due to currency rates.

Monthly active users on the platform jumped by 11% to 696 million, and payments of subscribers increased by 12% compared to a year to 276 million. Ad-level subscribers make up more than 60% of the monthly Spotify users.

In the current quarter, Spotify said he expects to reach 710 million active users a month and 14 million addings. The company expects that in the third quarter five million new premium subscribers reach 281 million subscriptions.

The income supported by Spotify’s advertising decreased approximately 1% to 453 million euros from 456 million years ago. The company stated that in its advertising stack and demand they see the promise, given its strong base base and focus on accepting and new instruments in the second half. Some opportunities include business and automated advertising.

“This is really a problem with implementation, not a strategy problem,” said Daniel Ek CEO during a profit call. “While I am dissatisfied with where we are today, I remain confident in the ambitions we have laid out for this business, and we quickly work to make sure we’re on the right path.”

EK said the company sees some “promising signs” in its software business.

Several information publications report This week, Doordash has picked up the company’s chief head as the main income.

During this period, Spotify stated that he rolled out the request for his and -Jean artificial intelligence. The company noted that the interaction with its AI DJ has doubled over the last year. His audio books have expanded to four new countries throughout the quarter, and the audition hours jumped by 35% in the US, UK and Australia.

Earlier this year, indie -ro -band on the platform known as the velvet caught the attention of the media After he quickly seized more than a million new listeners and raised questions on the use of artificial intelligence in creating music. The “band” was later confirmed to be mainly generated after wide speculation.

In 2024, Spotify posted its first full year of profit, since it cut costs and hiking Prices. Over the years, the company has preferred the income of the subscribers and invested the music in subcaste and audiobooks. Apple Music remains one of the main competitors.

Spotify said the quarter of more than 7,300 staff have ended and raised the $ 1 billion ransom program. This year, stocks increased by more than 40%.