By Christiana Sciaudone
Investing.com -- Spotify (NYSE:SPOT) sank more than 10% as user growth slows amid increasing competition.
Monthly active users rose 24%, to 356 million in the first quarter compared to a year earlier. The company had guided in the range of 354 million to 364 million, “modestly below our internal expectations,” Spotify said in a statement.
The Swedish audio streaming company also "modestly lowered" the range of total monthly average users for the full year, though it kept its forecast for premium subscribers unchanged.
Spotify is seeing increasing rivalry as companies like Apple (NASDAQ:AAPL) expand podcasting options. Shares have doubled over the past year as the company benefited from our stuck-at-home reality.
Spotify cited lower growth than planned in Latin America and Europe, though premium subscribers grew 21% from a year earlier to 158 million, at the top end of the company's guidance range.
For the second quarter, Spotify expects total monthly average users between 366 million and 373 million, with premium subscribers at 162 million to 166 million.