Spotify Q1 EPS $4.04 Tops, Q1 Revenue $5.3B Falls Short; Q2 Income Forecast €630M
Spotify posted Q1 net income of $843.7 million ($4.04 per share), topping the $3.72 estimate while its $5.3 billion revenue lagged the $5.36 billion forecast. In Q2, it forecasts €630 million operating income versus €684 million consensus and expects 6 million premium subscriber adds below the 302 million estimate.
1. Q1 Earnings and Revenue
Spotify reported net income of $843.7 million for the first quarter, or $4.04 per share, surpassing the $3.72 estimate. However, its $5.3 billion revenue fell short of the $5.36 billion analyst forecast, reflecting mixed top- and bottom-line results.
2. Q2 Guidance and Subscriber Forecast
The company projects Q2 operating income of €630 million, below the €684 million consensus, and anticipates revenue of €4.8 billion, roughly in line with expectations. It forecasts 6 million premium subscriber additions to reach 299 million total subscribers, under the 302 million estimate.
3. Market Reaction and Strategic Context
Shares plunged nearly 9% in premarket trading following the guidance miss as investors assess a slowdown in subscriber growth and profitability. Market participants continue to watch the impact of recent price increases, cost-cutting measures and AI feature rollouts on Spotify’s long-term margins.