Spotify’s revenue grew by 32.7% in Q1
Spotify (SPOT) reported its first-quarter 2019 results on Monday, April 29. The company continued to generate strong revenue growth thanks to robust growth in its subscription revenue, which makes up most of its revenue. The Swedish company generated 1.51 billion euros in revenue (or $1.68 billion) during the first quarter, growing 32.7% YoY, its fastest growth rate since going public.
The company continued to grow its revenue at a fast clip. As the graph below shows, the music streaming giant’s revenue growth has been consistently above 25%. Spotify also beat Wall Street estimates of $1.64 billion.
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Spotify’s losses shrank to 142 million euros
The company was also able to shrink its losses to 142 million euros (or $159 million) in the first quarter from 442 million euros in the fourth quarter of 2018 and 169 million euros in the first quarter of 2018. On a per share basis, it lost 0.79 euros, or $0.88 per share, much worse than Wall Street expectations of a loss of $0.39 per share, which is why the stock fell slightly by 0.1% on Monday to close at $138.14. The stock has fallen nearly 30% since July 2018.
For the current quarter, the company expects revenue of 1.51 billion euros to €1.71 billion, which would represent growth of 18% to 35% YoY. The company also expects operating losses of 15 million euros to 95 million euros.