Spotify Misses Q2 Earnings, Guides Q3 Operating Income Below Views; Stock Drops 6%
SPOT is trading near its 52-week low of $405 (13% above the low).
Summary
Spotify's Q2 earnings missed on both top and bottom lines — EPS of €2.61 vs. €2.76 expected, revenue of €4.78B vs. €4.79B — despite hitting 300 million premium subscribers. Operating expenses rose 3% to €941M on higher marketing and AI/cloud spending. Q3 guidance was mixed: revenue of €5B beat the €4.93B consensus, but operating income of €670M fell short of the €678M estimate. Shares dropped 6.2% pre-market. This follows upbeat investor day guidance in May and a strong Q1, making the miss a negative surprise. The subscriber milestone is overshadowed by margin pressure and a cautious profit outlook.
At the time of this announcement, SPOT was trading at $456.90 on NYSE in the Technology sector, with a market capitalization of approximately $100.1B. The 52-week trading range was $405.00 to $748.30. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.