Music streaming platform Spotify had its shares fall about 7 percent in Tuesday’s extended trading after reporting a third-quarter loss that was bigger than what analysts had expected. Revenue also narrowly surpassed analyst estimates. The company reported a loss per share of 99 euro cents compared to analysts’ estimate of 85 cents, according to Refinitiv. Revenue for the third quarter came in at 3.04 billion euros, slightly beating the estimate of 3.02 billion euros, according to Refinitiv. The company also reported monthly active users of 456 million for the third quarter. This is up 20 percent year over year. Spotify also reported 195 million paying subscribers, which is up 13 percent from a year ago. In its last report, the company said that it expected to add about 17 million new monthly active users which would bring its total to 450 million. It had also expected revenue to increase to 3 billion euros and to report 194 million paying subscribers in the third quarter. The company was able to meet up with all of these. Spotify continues to invest in advertising, and its ad-supported revenue increased 19 percent year over year. It also made up 13 percent of total revenue. Spotify said growth was pushed by podcasting. Podcasts were introduced on Spotify in 2015 and currently, there are over 4.7 million of these podcasts on the platform, according to the company’s report. Some of these podcasts are Spotify originals and exclusives. The company announced back in September that its listeners in the US now have the ability to purchase and listen to at least 300,000 different audiobook titles, marking its latest attempt to turn its platform into a one-stop-shop for everything audio. Founded in 2006 by Daniel Ek and Martin Lorentzon, the audio streaming service and media services provider is one of the biggest platforms in its categories in the world.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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