Spotify released its quarterly earnings report on Tuesday, showing signs of improvement from 2022 despite missing Wall Street estimates. The company reached its highest-ever first-quarter growth in monthly active users, thereby boosting its subscriber base.
Revenue for the period was 3.04 billion euros, compared to 3.09 billion euros expected by Wall Street analysts. The music streaming platform’s underperformance was largely pinned on its decision to soften its ad business as well as exchange rate changes.
The above actions, paired with largescale podcast investments and job cuts, contributed to a loss per share of -1.16 euros; lower than an expected -0.85 euros for the quarter.
Cash flow for the company improved, with a positive cash flow of 57 million euros being reported – up from a cash flow of negative 73 million euros last quarter and 22 million euros in year-over-year.