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20h ago

Spotify Posts Second-Quarter Loss and Forecasts Soft Q3

Rising social charges pushed Spotify to an €86 million deficit despite 10% revenue growth, an 18 million increase in MAUs, plus a $1 billion buyback boost

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 recorded a net loss of €86 million in Q2 on revenue of €4.19 billion, missing analyst forecasts for both profit and sales.
  • Premium subscribers rose 12% year-on-year to 276 million while monthly active users climbed by 18 million to 696 million, both exceeding expectations.
  • Operating expenses increased 8%, driven by €98 million in social charges tied to share-price gains and higher marketing spend against rivals.
  • The board approved a $1 billion increase to its share repurchase program, lifting total buyback authorization to $2 billion with $1.9 billion available through April 2026.
  • For Q3, Spotify expects €4.2 billion in revenue, €485 million in operating income, 710 million MAUs and 281 million premium subscribers, all below Wall Street estimates.