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Spotify Posts Q2 Loss as User Growth Masks Rising Costs

Elevated social charges from stock-linked payroll taxes triggered higher costs, resulting in a revenue miss coupled with a boosted $2 billion buyback plan.

A screen displays the logo of Spotify on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., December 4, 2023. REUTERS/Brendan McDermid/File Photo
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Spotify's operating profit between April and June reached 406 million euros, below the 539 million euros it had forecast

Overview

  • Spotify swung to a second-quarter net loss of €86 million, compared with a €274 million profit a year earlier as operating expenses climbed.
  • Revenue rose 10 percent to €4.19 billion but fell short of analyst estimates amid unfavorable currency movements.
  • Premium subscribers reached 276 million and monthly active users hit 696 million, both topping Wall Street forecasts.
  • Third-quarter guidance forecasts €485 million in operating income, 710 million MAUs and 281 million premium subscribers, all below consensus.
  • The board has expanded its share repurchase authorization to $2 billion to balance capital returns with ongoing growth investments.