Spotify predicted on Tuesday that its operational benefits of the current quarter will be lower than Wall Street estimates, since it faces an increase in payrolls on payrolls, which reduced brightness to its strong growth of subscribers and caused the actions of society to fall 8% before the opening of markets.
Investors closely follow the company’s efforts to increase profitability, after in recent years it has benefited from price increases and cost reduction initiatives.
Spotify’s operational benefit in the first quarter, of 509 million euros, also stood below estimates due to the increase in taxes linked to the salaries and benefits of employees in some countries.
Spotify, the Apple and Amazon competitor, resorted to artificial intelligence to boost its growth. It extended to more than 40 new markets its function of the “AI Playlist”, which allows subscribers to create personalized reproduction lists from written indications.
According to the data collected by LSE, the company’s forecast for the current quarter is 689 million monthly active users, compared to the average estimation of analysts of 684.9 million.
Spotify expects premium subscribers in the second quarter to increase 273 million, above the estimates of visible Alpha of 271.5 million.
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Spotify may not reach second quarter estimates
The company provides for exploitation income of 539 million euros (614.24 million dollars) in the second quarter, below the estimates of 557.5 million euros, according to the data collected by LSE.
“The underlying data at this time are very healthy. The commitment remains high, the retention is strong, and thanks to our freemium model, people have the flexibility of staying with us even when things feel more uncertain,” said the CEO, Daniel EK.
“The short term can bring some noise, but we continue to trust in the long -term history,” he added.
Premium subscribers increased 12% to 268 million in the first quarter, exceeding alpha visible estimates of 265.3 million.
The company had 678 million monthly active users, above 671.9 million estimates, while revenues increased by 15% to 4,190 million euros, slightly below estimates of 4.200 million.
Spotify provides for revenues of 4.3 billion euros in the second quarter, in line with estimates.
With Reuters information
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