Home Equities Score Spotify Technology S.A. (SPOT) Stock Prices Trending Down Following Lackluster Financial Reports

Spotify Technology S.A. (SPOT) Stock Prices Trending Down Following Lackluster Financial Reports

Spotify Technology S.A. (SPOT) stock prices were down 1.71% as of market close on April 27th, 2021, bringing the price per share to USD$292.92 at the end of the trading day. Subsequent today in current-market fluctuations saw the stock price further fall by 9.02% to hit USD$266.51.

Growth in Revenue

With total monthly active users having seen a 24% year-over-year increase to sit at 356 million users in the first quarter of 2021, Q1 2021 saw the addition of 11 million monthly active users. With U.S., Mexico, Russia, and India markets having performed as expected, growth in Latin America and Europe fell short of expectations. Numbers reported for the quarter, and, as a result, for cumulative totals were within the guidance range for the quarter but fell short of internal expectations.


3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.

We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.

Click here for full details and to join for free

Sponsored


Consumption Rates

Q1 2021 saw significant growth in global consumption hours as compared to the same time period of the previous year. Consumption increased per user across the board with developing regions still lagging behind pre-COVID levels, unlike the increased pandemic consumption in developed regions such as North America and Europe.

Spotify Premium Growth

The company’s Premium service also saw a year-over-year increase of 21% in monthly subscribers of the paid service. Premium subscriptions were reported to be a cumulative 158 million, with nearly 4 million paid subscribers having been added in Q1 2021. The numbers reported leaned towards the top end of guidance ranges, with North American paid subscriptions leading the growth across all regions. Latin America especially outperformed expectations with a general preference for the Family Plan Spotify product.  South Korea was the biggest driver of the company’s contributions from new markets.

Underwhelming Expectations

As a result of subscriber outperformance and effective advertising, total revenues reported were at the top end of the company’s guidance range, coming in at USD$2,592 million to represents a year-over-year growth of 16%. Spotify Premium revenues increased to USD$2331.28 million, a 14% year-over-year increase, while revenue from ads grew a monumental 46% year-over-year to USD$260.77 million.

Q1 2021 Developments

March 29th, 2021 saw SPOT announce its acquisition of Betty Labs, the creators of Locker Room, to facilitate the company’s foray into the live audio space. Q1 2021 also saw several upgrades being launched to improve the user experience for the company’s platforms, including the addition of a Desktop App and a redesigning of the existing Web Player. Given the expanding reach of the company’s products, they also took steps to include 36 new languages on their web platform, bringing the total number of languages it can be accessed in up to 62.

Future Outlook for SPOT

Spotify has become a household name and the company’s footprint continues to grow in existing and emerging markets. With stellar financial reports that largely exceed expectations and a Q1 2021 that saw various developments geared towards future growth, the company is poised to meet and exceed its future guidance targets, thus ushering in sustained and significant increases in shareholder value.

Get The Best Stocks To Trade Every Day!

Join now to get the NewsHeater.com pre-market morning brief 100% free

Must Read

Oragenics Inc. (OGEN) stock gained during current market. What’s driving it high?

Oragenics Inc. (OGEN) stock gains by 54.33% during the current market trading session. Oragenics, is a research and development firm focused on combating infectious...

Flora Growth Corp. (FLGC) stock declines during premarket. Here’s what you should know?

Flora Growth Corp. (NASDAQ: FLGC) stock gained by 49.67% at last close whereas the FLGC stock price plunged by 18.36% in the pre-market trading...

Palatin Technologies Inc. (PTN) stock rises during pre-market trading. What has been happening lately?

Palatin Technologies Inc. (NASDAQ: PTN) stock declined by 1.16% the last close whereas the PTN stock price gains by 3.91% in the pre-market trading...

Smith Micro Develops Inc. (SMSI) stock soars during current market trading. Here’s to know why?

Smith Micro Develops Inc. (NASDAQ: SMSI) stock surged by 2.39% during the current market trading session. Smith Micro creates software that simplifies and improves...

Drive Shack Inc. (DS) stock soars during after-hour trading, followed by no recent update

Drive Shack Inc. (NASDAQ: DS) stock declined by 3.94% at last close while the DS stock-price surged by 7.38% in the after-hour session. Drive...

Oragenics Inc. (OGEN) stock gained during current market. What’s driving it high?

Oragenics Inc. (OGEN) stock gains by 54.33% during the current market trading session. Oragenics, is a research and development firm focused on combating infectious...

Tonix Pharmaceutics Holdings Inc. (TNXP) stock gains during current market. What’s driving it high?

Tonix Pharmaceuticals Holdings Inc. (TNXP) stock gains by 2.81% in the current market trading session. Tonix is a clinical-stage biopharmaceutical business dedicated on finding,...

Intec Pharma Inc. (NTEC) stock declines during current market after a massive upraise. What’s happening?

Intec Pharma Inc. (NASDAQ: NTEC) stock drops by 7.88% during the current market trading session. Intec Pharma is a clinical-stage biopharmaceutical firm specializing in...

Related News

Tonix Pharmaceutics Holdings Inc. (TNXP) stock gains during current market. What’s driving it high?

Tonix Pharmaceuticals Holdings Inc. (TNXP) stock gains by 2.81% in the current market trading session. Tonix is a clinical-stage biopharmaceutical business dedicated on finding,...

NanoVibronix Inc. (NAOV) stock fell during after-market. Let’s find out why?

NanoVibronix Inc. (NAOV) stock plunged by 27.2% at the last close while the NAOV stock price fell by 8.42% in the after-hours trading session....

China Online Education Group Inc. (COE) stock fell during current market. Here’s the update

China Online Education Group Inc. (COE) stock declines by 13.91% in the current market trading. China Online Education Group is a major Chinese online...

Abeona Therapeutics Inc. (ABEO) stock surged during current market trading. Why so?

Abeona Therapeutics Inc. (ABEO) stock gains by 6.63% in the current market trading session. Abeona Therapeutics Inc. is a pharmaceutical firm in the early...

17 Education & Technology Group Inc. (YQ) stock plummeting continues on Monday pre-market but why?

17 Education & Technology Group Inc. (YQ) stock has declined 21.28% as of this writing in Monday,s pre-market. In the regular trading session on...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Get The Best Stocks To Trade Every Day!

Join now to get the NewsHeater.com pre-market morning brief 100% free

SPECIAL GIFT

WE HAVE A GIFT FOR YOU

Download Free eBook For

7 GROWTH STOCKS FOR 2021

100% free. stop anytime no spam