LONDON - Spotify on Thursday reported a modest 5 percent rise in premium subscribers for its third quarter, while revenue and gross margins were roughly in line with market expectations.
Caught short by a global sell-off in major tech stocks over the past month, shares of Spotify have erased their roughly 30 percent gain after the Swedish company’s closely watched US stock market debut in April on the New York Stock Exchange.
Monthly subscribers, which deliver 90 percent of revenue, rose to 87 million, up from 83 million in the quarter ending June, it said. The latest results matched the average forecast in a Thomson Reuters analyst poll.
Total users rose to 191 million, including free, advertising-supported listeners.
The company tightened its expectations for full-year 2018 monthly active listeners to between 199 million to 206 million users. Analysts, on average, had been predicting 208 million users by the end of the year.