Spotify stock plummets after earnings beat expectations as guidance disappoints

Shares of Swedish audio-streamer Spotify fell 9% in premarket trading after soft guidance overshadowed an earnings beat.

The New York-listed stock fell as much as 12% following earnings before the bell before paring some of the losses.

First-quarter revenue rose 8% from last year to 4.5 billion euros ($5.3 billion), while monthly active users (MAUs) rose 12% year-on-year to 761 million, both slightly above FactSet estimates.

Premium subscribers grew 9% to 293 million, reflecting 3 million quarterly net adds, Spotify said.

For the current quarter, Spotify expects to add 17 million net users to reach 778 million MAUs. It expects to grow its premium subscribers by 6 million to 299 million.