Music streaming giant Spotify issued its earning report on Wednesday, its first after going public in February. The company reported an increase in paying subscribers and revenue of $1.36 billion, which was less than Wall Street analysts expected.
Spotify finished the quarter ending in March with a new high of 75 million subscribers, an increase of 45 percent from the same time last year, the company said. Those premium members are folded into the 170 million active users the service recorded over the same period, a figure up 30 percent year-over-year.
In the quarter, Spotify recorded year-over-year 26% revenue growth, which was in line with it’s own expectations, but not those of Wall Street. The firm’s stock price slid in after-hours trading, sliding 10%, to as low as $153.50.
We closed the quarter with 170 million monthly active users (up 30% Y/Y). Both Ad-Supported and Premium MAU were in line with our expectations and guidance range.
Ad-Supported MAUs totaled 99 million at the end of Q1, up 21% Y/Y and 9% Q/Q. We continue to see strong growth in emerging markets, particularly Asia given our recent launches in Vietnam and Thailand, as well as increasing momentum in Japan.
Premium Subscribers grew to 75 million, up 45% Y/Y. Family Plan additions continued to be a source of strength. We also extended the length of our trial programs from 30 days to 60 days in certain key markets including the US, Australia, and Brazil, which we believe will have a positive effect on conversion and smooth some of the seasonal intake trends over time.
Spotify competitor Apple Music reached the 40 million subscriber milestone in April, up from 27 million in June 2017. Apple’s streaming service is growing at a rate of 5% per month. If that growth continues, Apple Music would pull ahead of Spotify in the users column sometime this summer.