Spotify Earnings: Profits Turn to Losses
Here's our initial take on Spotify Technology's (NYSE: SPOT) fiscal 2025 second-quarter financial report.
Music streaming leader Spotify came up well short of expectations on Tuesday with its second-quarter report. Revenue of 4.19 billion euros grew by 10% year over year but missed analyst expectations. Earnings per share tumbled to an unexpected loss of 0.42 euros, far below the average analyst estimate of a 2.02 euro profit.
Spotify reported solid subscriber gains during the second quarter. The company ended the quarter with 276 million premium subscribers, up 12% year over year, and 433 million ad-supported users, up 10% year over year. Premium revenue jumped by 10%, although ad-supported revenue dropped by 1%. Overall gross margin improved to 31.5%, driven by gross margin gains in both the premium and ad-supported businesses.
Source Fool.com
