Shares of Swedish audio streamer Spotify fell 9% in pre-market trading as soft guidance masked results.
New York-listed stocks fell as much as 12% after pre-bell results, paring some of the losses.
First-quarter revenue rose 8% year over year to 4.5 billion euros ($5.3 billion), and monthly active users (MAUs) rose 12% year over year to 761 million, both of which were slightly above FactSet’s expectations.
Spotify said premium subscribers rose 9% to 293 million, reflecting net additions of 3 million in the quarter.
This quarter, Spotify expects to add 17 million net users and reach 778 million MAUs. The number of premium subscribers is expected to increase by 6 million to 299 million.
Analysts surveyed by FactSet said second-quarter MAU guidance was slightly above Wall Street expectations, but net premium enrollment was expected to rise to just over 340 million.
Spotify said on its earnings call that there is “substantial uncertainty” in its guidance.
Operating profit was expected to be 630 million euros, according to FactSet estimates, while TheStreet expected it to be closer to 680 million euros.
Spotify has repeatedly raised the price of its premium subscriptions to improve profitability.
In February, the company increased its subscription price in the U.S. from $11.99 to $12.99 per month.
As of Monday’s close, the stock had fallen 14% since the beginning of the year.
