Spotify shares rose 2.9% in pre-conference trading as the Luxembourg-based digital music services company reported bigger-than-expected second-quarter losses, but revenue and monthly active users that beat expectations, while estimates of the company for the future were optimistic.
Net losses widened to 125 million euros, or 0.85 euros per share, from 20 million euros, or 0.19 dollars per share, a year ago.
Consensus estimates called for a loss of $0.68, while revenue rose 22.9% to $2.86 billion, beating estimates of $2.81 billion.
Cost of sales rose more than sales, by 29.5% to 2.16 billion euros, as gross margin shrank to 24.6% from 28.4%.
Monthly active subscribers rose 18.6% to 433 million, versus estimates for 188 million.
For the third quarter, Spotify expects monthly active users of 450 million, a number higher than the current estimates of 443.9 million.
Source: Capital
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