Spotify stock slides return from record highs after missing Q2 revenue and revenue

Spotify (spot) Shares fell by 10% in early pre-market trading on Tuesday after missing second-quarter revenue and revenue expectations.

The results follow an astounding 120% meeting in the past year as a stock Rebound from 2022 low It flips the price hike, cost reductions, and investor enthusiasm for AI and advertising.

Spotify hit a record high of $738.45 earlier this month, but the share slides to around $635 shortly after the results.

Spotify reported second quarter revenue of 4.19 billion euros ($4.866 billion), with analysts’ forecast of 4.27 billion euros, up from 3.81 billion euros in the same period last year.

The company recorded an adjusted loss of 0.42 euros ($0.49) per share, with a significant lack of forecasts of 1.97 euros from its 1.33 euros profit for the second quarter of 2024.

“The large currency movements over the quarter will impact the impact of reported reports on 104 million euros and guidance,” the company said in its revenue release.

Operating profits also fell below expectations, putting pressure on EUR 116 million, social fees, high salary and related costs, and a disadvantaged revenue mix. Similarly, the current quarter guidance falls short of Wall Street estimates, “incorporating a social fee of 25 million euros based on the second share price of $767.30,” the company said.

Spotify was led to 710 million third-quarter active users (MAUS) with 707 million analysts expected.

In the second quarter, Maus rose 11% year-on-year to 696 million, breaking an estimate of 689 million. Premium subscribers rose 12% to 276 million, while ad-supported users rose from 100% to 433 million.

“Overall, we continue to look at our business to bring growth and margin improvements in 2025 as we reinvest in supporting our long-term potential,” the company said.

Large gatherings heading for Spotify’s revenue report include layoffs, leadership changes and layoffs, leadership changes; Pullback from the exclusivity of costly podcasts. After spending $1 billion to build a podcast business, the company then went back and reduced its focus. Still, it is committed to the medium, Pay creators over $100 million in the first quarter aloneIncludes famous names such as Joe Rogan and Alex Cooper.

Company’s 2022 Investor Day, Spotify has set seemingly noble goals, including long-term margin goals of 30% to 35%. At the time, the company was struggling to make a profit, but its total margin was packed at around 25%.