(New York) Spotify shares slipped on Wednesday after the release of forecasts deemed disappointing by the market, although the online music service did better than expected in the fourth quarter.
Updated yesterday at 5:51 p.m.
In electronic trading after the close of Wall Street, the title of the Swedish company, listed in New York, dropped 10.22% to 172.30 dollars.
In the fourth quarter, the platform crossed the 400 million active user mark, to 406 million, up 18% year on year, a pace that gradually slows over the quarters.
The growth in the number of paying subscribers is also decelerating, although it still reached 16% year-on-year, with a total of 180 million paying users at the end of 2021.
The group expects to reach 418 million monthly active users and 183 million paid subscribers by the end of the first quarter, which is in line with analysts’ expectations. If the service managed to meet its objectives, it would nevertheless post a growth rate still lower than that of the fourth quarter.
The market retained the margin forecast for the first three months of 2022, down quite sharply to 25.0%, compared to 26.5% in the last quarter of 2021, which was already a decline compared to the previous period.
Spotify has not mentioned any impact of the controversy it is currently the subject of, with the triggering element of the podcast of the star host Joe Rogan.
Accusing the comedian of conveying conspiracy theories against the anti-COVID-19 vaccination, singer Neil Young recently asked to have his music removed from the platform. It has since been emulated by other artists, from folk singer Joni Mitchell to R&B artist India. Arie.
“We’re trying to balance creative expression with the safety of our users,” CEO and Founder Daniel Ek said on the earnings conference call.
He recalled that he had already announced measures on Sunday to contextualize content that could be considered disinformation.
All podcasts discussing COVID-19 will now include links to factual, science-based information about the pandemic.
Daniel Ek also said he had “great confidence” in the trajectory of advertising on the platform.
The manager hinted that if advertisers did not want to buy space in Joe Rogan’s podcast, the platform’s most popular in 2021, “there (was) for everyone”, with a wide offer of programs .
In the fourth quarter, sales amounted to 2.689 billion euros, up 24% year-on-year. Spotify ended the period with a net loss of 39 million euros.