Spotify shares dropped more than 11% Tuesday after the music streaming service fell short of Wall Street's expectations and posted weak guidance for the current quarter.
Shares headed for their worst session since July 2023.
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 Swedish 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.
Spotify said that higher personnel, marketing and professional services costs and 115 million euros worth of what it called social charges contributed to the results.
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.