Overview
- Spotify shares fell about 12% to 13% Tuesday after its second‑quarter targets came in below Wall Street expectations.
- For Q2, the company guided to about 778 million monthly active users, roughly 299 million paying subscribers, and operating income near €630 million, citing higher outlays for AI, cloud services, and marketing.
- The softer guide followed solid Q1 results with 761 million monthly active users, 293 million premium subscribers, and revenue of about €4.5 billion, up roughly 8% from a year earlier.
- Spotify has been raising Premium prices, including a U.S. increase to $12.99 for the individual plan, and says cancellations have stayed low as investors gauge how pricing affects subscriber gains.
- Management continues to push beyond music into podcasts, audiobooks, and advertising tools to diversify revenue and make more money from its large free user base.