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Investing.com - Spotify has unveiled a current-quarter guidance for monthly active users that was slightly below expectations, as the firm flagged "some noise" surrounding the current business environment.
The Sweden-headquartered streaming music service said it expects 689 million second-quarter monthly active users, compared with Bloomberg consensus estimates of 694.38 million.
Operating income during the period is also tipped to come in at 539 million euros, versus projections of 553.2 million euros.
Heading into its first-quarter earnings announcement, some speculation had surrounded the potential impact of aggressive U.S. trade policies and broader economic uncertainty on the company. Consumer sentiment has showed recent signs of deteriorating, fueling worries that many households could start to rein in nonessential spending.
In its first quarter, monthly active users, a key metric of engagement on the platform, was 678 million. Analysts had anticipated 679.04 million.
Revenue stood at 4.19 billion euros, while operating income was 509 million euros.
"The underlying data at the moment is very healthy: engagement remains high, retention is strong, and thanks to our freemium model, people have the flexibility to stay with us even when things feel more uncertain,” said CEO Daniel Ek in a statement.
"So yes, the short term may bring some noise, but we remain confident in the long-term story, and the direction we’re heading in feels clearer than ever.”
Shares in Spotify (NYSE:SPOT) sank by more than 7% in premarket U.S. trading on Tuesday.