The streaming music agency Reported Wednesday it hit 75 million paying subscribers and reduced losses in the initial 3 months in a year, but that wasn’t sufficient to impress investors. Shares fell 7 percent in after-hours trading as investors scrutinized the newly public firm. Even amid fierce competition from the likes of Apple and Amazon, Spotify added 4 million paying clients throughout the quarter, and its subscriber numbers increased 45% from the year before. The company has 170 million monthly active customers in total, the majority employing the free, ad-supported version of the agency.
In comparison, Apple Music, Spotify’s next closest competitor, hit 40 million paid subscribers last month. Spotify’s operating loss for the quarter fell to 41 million euros, or about $49 million, down from 139 million euros in the same period a year before. Tech firms have a very long history of whiffing on their very first earnings reports after going public. Facebook, Twitter, and Snapchat were considered not good enough and had to prove themselves to Wall Street in the quarters which followed. Spotify’s unconventional Wall Street introduction added an unknown. Unlike conventional IPOs, Spotify didn’t raise capital. Instead, he listed the existing shares directly on the inventory market without relying upon underwriters to attract investors, set a price, and stabilize the stock as it started trading.
The odd debut initially had analysts throwing Their hands on what to expect after Spotify went people. Itself cautioned that trading can be volatile as a consequence of this approach. However, the stock has been comparatively steady. Spotify started at $165.90 an action on its first day of trading and stopped trading Wednesday at about $170.