Shares of Swedish audio-streamer Spotify fell 9% in premarket trading after soft guidance.
The New York-listed stock fell as much as 12% after earnings before the bell, paring some losses.
First-quarter revenue rose 8% from a year earlier to 4.5 billion euros ($5.3 billion), while monthly active users (MAU) rose 12% year-on-year to 761 million, slightly above FactSet estimates.
Spotify said premium subscribers grew 9% to 293 million, reflecting a quarterly net add of 3 million.
For the current quarter, Spotify is expected to reach 778 million MAUs by adding 17 million net users. It expects the number of its premium subscribers to increase from 6 million to 299 million.
While second-quarter MAU guidance was slightly above Wall Street expectations, the number of net premium subscribers was expected to grow by just over 300.4 million, according to analysts surveyed by FactSet.
The guidance is “subject to substantial uncertainty,” Spotify said in an earnings presentation.
Operating income was guided to 630 million euros, according to FactSet estimates, while the Street was expecting closer to 680 million euros.
Spotify has repeatedly raised prices for its premium subscriptions in an effort to improve profitability.
In February, the company raised the subscription price in the US from $11.99 to $12.99 per month
At Monday’s close, the stock was down 14% year-to-date.
