By Sam Boughedda
Investing.com — Spotify Technology SA (NYSE:SPOT) announced earnings per share of -€0.21 on revenue of €2.69 billion. Analysts polled by Investing.com anticipated EPS of -€0.51 on revenue of €2.65 billion.
Spotify's total monthly active (MAUs) users grew 18% year-over-year to 406 million in the quarter, up from 381 million last quarter, near the top end of the company's guidance range. In addition, the music streaming company said it saw double-digit year-on-year growth in all regions, with strong results in India and Indonesia.
Premium subscribers grew 16% year-over-year to 180 million in Q4, up from 172 million last quarter and near the top end of the guidance range.
Furthermore, the company said it generated a double-digit increase in the number of monthly active users engaged with its podcast content compared to Q3. As a result, the podcast share of overall consumption hours on its platform reached another all-time high, said Spotify.
In Q1 2022, the company expects a total of MAUs of 418 million, with premium subscribers coming in at 183 million and revenue being €2.60 billion. The revenue outlook meets expectations, but the subscriber number is lower than analysts expected and that revenue number may be drawing suspicion as Spotify noted that "360 bps" of year over year growth come from currency tailwinds. The number would mark 21% year over year growth.
Following the report, Spotify shares dropped as much as 17% after-hours, following a 5.75% fall in the regular session. They are currently trading just below $160/share, which would set a new 52-week low and put shares back where they were before Spotify announced the exclusive licensing of Joe Rogan's market-leading podcast. Rogan has drawn fire over recent weeks for COVID-19 views and comments, with the blowback weighing on Spotify's reputation and leading the company to issue a content policy over the weekend.