Spotify shares dropped about 4% Tuesday after the music streaming platform fell short of Wall Street's expectations and posted weak guidance for the current quarter.
Here's how the company did versus LSEG estimates:
Loss: Loss of .42 euros vs earnings of 1.90 euros per share expected
Loss of .42 euros vs earnings of 1.90 euros per share expected Revenue: 4.19 billion euros vs. 4.26 billion expected
The Sweden-based music platform's revenues rose 10% from about 3.81 billion euros in the year-ago period. The company posted a net loss of 86 million euros, or a loss of .42 euros per share, down from net income of 225 million euros, or 1.10 euros per share a year ago.
Third-quarter guidance came up short of Wall Street's forecast.
The company expects revenues to reach 4.2 billion euros, compared to a 4.47 billion euro estimate from StreetAccount. Spotify said the forecast accounts for a 490-basis-point headwind due to foreign exchange rates.