Spotify Technology S.A. (NYSE: SPOT) reported its second-quarter financial results before the markets opened on Wednesday. The firm said that it had a net loss of $2.10 per share and $2.08 billion in revenue. The consensus estimates had called for a net loss of $0.53 per share and revenue of $2.27 billion, and the same period of last year reportedly had a $0.46 per-share net loss and $1.89 billion in revenue.
During the most recent quarter, total monthly active users (MAUs) increased 29% year over year to 299 million, which was at the top of the guidance range. Analysts were calling for 298 million MAUs.
Also, Spotify’s Premium Subscribers grew 27% to 138 million, compared with the consensus estimate of 137 million.
Currently, 21% of the firm’s total MAUs engage with podcast content, up from 19% in the first quarter, and consumption continues to grow at triple-digit rates year over year. Management saw strong MAU growth in podcast content across all regions for Spotify.
During the quarter, the company inked a deal with Warner Bros. to produce original narrative podcasts based on superhero and supervillain characters of the DC Universe that will be available exclusively on the streaming service. Warner Bros. will collaborate with Spotify to produce, market, advertise and distribute these shows on its platform. These narratives will be based on existing characters, like fan favorites Harley Quinn and the Joker.
At the same time, Spotify also signed podcasting giant Joe Rogan for a whopping $100 million.
Spotify stock traded down 1.5% early Wednesday to $262.94, in a 52-week range of $109.18 to $299.67. The consensus price target is $242.26.
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