Spotify forecast a decline in subscriber numbers for the current quarter, leading to an 18% decline in the company’s shares.
The company forecast 183 million paying subscribers for the current quarter, below analysts’ expectations of 184 million.
However, the company assured investors of continued growth despite a number of controversies, including the Joe Regan controversy.
Despite the expected decline in subscribers, the company’s fourth-quarter revenue performed better than analysts expected.
The growth is attributed to more advertising and the infusion of new services such as podcasts. Spotify’s quarterly revenue rose to 2.69 billion euros from 2.17 billion euros a year earlier, above analysts “estimate of 2.65 billion euros.
Spotify saw a 16% increase in paying subscribers for its premium service, with premium subscribers growing by 180 million, exceeding analysts’ estimates of 179 million.
The total number of monthly active users rose by 18% to a record 406 million. The company recorded an all-time high in the consumption hours of its podcast services. Paid podcast subscription was also extended to 33 other markets.
For more information, read the original story in Reuters.