Spotify Technology SA missed the beat on Wednesday.
Spotify's largest market is in Europe, where 36 percent of its monthly active users reside, the company said Wednesday. They voiced concerns that discounts were eating into the company's average revenue per user.
Music streaming company Spotify has made put out an array of new metrics with its first earnings report as a publicly-trading entity and it has shareholders reacting negatively and strongly so.
Amazon Music has not provided exact subscriber numbers, however, affirms subscriptions grew over 100% within the last six months to "tens of millions of paid customers".
More acutely, just 9% of subscribers are from the "Rest of the World".
Spotify shares fell by 8 per cent in after-hours...
When the dust settled, Spotify posted revenue of $1.36 billion, a solid increase of about 26% year-over-year.
Revenue aligned with Spotify's previous guidance of 1.1 billion euros - 1.15 billion euros, however, fell below Reuters analyst expectations for 1.143 billion euro.
Apple Music, by comparison, recently passed the 40 million paid subscribers mark.
But the competition could make it more hard for Spotify to make money, which has proved to be a challenge since its music service launched a decade ago.
While there hasn't been any official press release or word out on when Spotify will actually launch, we're guessing that it's going to be towards the tail end of this year, once the company has successfully filled these two positions to begin with.
Revenues were up 26% to €1.139B; that's up 37% after adjusting for a negative foreign-exchange impact.
Spotify's Gross Margin was 24.9 percent in Q1, over the top of its guidance range of 23-24 percent.
Spotify lost 169 million euros, or 1.01 euros per share, in the first quarter, narrowing from a loss of 173 million euros at the same time previous year.
By the end of 2018, the company is aiming to have 92-96 million paying subscribers, along with 198-208 million monthly active users.
Besides selling subscriptions, Spotify brings in money from ads played on a free version of the service that accounts for the biggest part of its total audience.
Tencent Music Entertainment (TME), which attracts three-quarters of China's booming music-streaming market, has been reported to be eyeing a listing in 2018. Advertising sales are a tenth of what it makes from subscribers.