Spotify Stock Plunges After Q2 Earnings - Here's Why
Portfolio Pulse from Anusuya Lahiri
Spotify Technology SA's Q2 FY23 revenue grew by 11% YoY to $3.46 billion, missing the consensus of $3.57 billion. Total Monthly Active Users rose 27% YoY to 551 million. The company announced it would raise subscription prices in some markets. The adjusted gross margin improved by 22 bps to 25.5%. The company held $3.5 billion in cash and equivalents. However, the company's shares traded lower by 6.55% at $153 premarket due to the tepid MAU growth outlook.
July 25, 2023 | 11:17 am
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Spotify's Q2 FY23 revenue missed the consensus, leading to a drop in its stock price. The company's decision to raise subscription prices in some markets and the tepid MAU growth outlook also contributed to the negative sentiment.
Spotify's Q2 FY23 revenue missed the consensus, which is a negative signal for investors. The company's decision to raise subscription prices could potentially slow down user growth, which is another negative factor. The tepid MAU growth outlook indicates that the company's user growth might not meet expectations, which could further negatively impact the stock price.
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