Spotify shares are dropping early Thursday, a day after disappointing earnings.
It was the first time Spotify reported as a public company.
Spotify shares fell as much as 10% Thursday morning after the streaming-music giant released its first quarterly earnings report as a public company. The bottom-line results were a lot worse than Wall Street was anticipating.
Spotify reported earnings-per-share of -1.01 euros, missing the -0.23 euros consensus. Revenue was 1.14 billion euros, in line with expectations.
The company reported it had 170 monthly active users for the quarter, up 30% year-over-year. The number of paid subscribers, a key number for Spotify's success, was 75 million, up 45% year-over-year. But that didn't impress investors as the stock has been sliding since the earnings release.
Spotify shares were listed on the New York Stock Exchange through a direct offering on April 3 and began trading at $165.90. They've dropped roughly 7% from that level.