Spotify shares dip after third-quarter earnings report

Spotify shares fell about 7% after hours on Tuesday after the streaming giant reported third-quarter 2022 losses that were worse than expectations.

Here’s how the company did:

• Loss per share: 99 euro cents vs. an estimated loss of 85 euro cents per share as expected by analysts, according to Refinitiv
• Revenue: 3.04 euros vs. 3.02 billion expected by analysts, according to Refinitiv

Spotify reported 456 million monthly active users for the quarter, up 20% year over year, and195 million paid subscribers, up 13% from a year ago.

In its second-quarter report, Spotify had said it expected to add approximately 17 million new monthly active users in the third quarter, bringing its total to 450 million. It had also expected its revenue to increase to 3 billion euros and to post 194 million paid subscribers in the quarter.

Spotify is continuing to invest in advertising, and its ad-supported revenue grew 19% year over year and made up 13% of its total revenue. The company said in the report that the growth was driven by podcasting.

Spotify introduced podcasts in 2015, and it is now home to more than 4.7 million of them, according to the report. In September, the company announced that its U.S. listeners are now able to purchase and listen to more than 300,000 different audiobook titles, marking its latest attempt to turn its platform a one-stop-shop for all things audio.

Spotify will hold its quarterly earnings call with investors at 4:30 P.M. EST.