Spotify Drops 13% on Weak Q2 Subscriber Guidance
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- Spotify shares fell over 13% after the company projected 299 million total premium subscribers by June — a roughly six-million net-add guide that fell short of the 300 million-plus Wall Street was modeling.
- Spotify ended Q1 with 293 million premium subscribers, in line with its own guidance, and 761 million monthly active users, up from 751 million the prior quarter and 678 million a year earlier (a 12% annual jump).
- Spotify posted Q1 operating income of €715 million ($837 million) on revenue of €4.5 billion ($5.27 billion), up 8% year-over-year — described in the source as 'solid' overall quarterly numbers.
- The U.S. individual premium subscription price was raised by $1 to $12.99 per month in February, preceding the guidance miss.
- Spotify, headquartered in Stockholm and celebrating its 20th anniversary this month, is planning an investor day on May 21 in New York.
Why it matters: The 13% sell-off is a forward-looking punishment, not a verdict on Q1: the quarter delivered €715M in operating income and MAUs above company guidance, yet investors latched onto a sub-consensus six-million net-add guide issued right after a February U.S. price hike — putting extra pressure on Spotify's May 21 investor day to defend the path back to faster subscriber growth.
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