Just one month after its IPO, Spotify has registered a drop on Wall Street of almost 7%, a direct consequence of the market's disappointment after learning about the company's quarterly results last Wednesday.
According to the report, the music streaming platform has reached 75 million paying users on its platform, while managing to reduce its losses during the first months of the year, going from 139 million euros registered in the same period of 2017 to 41 million euros registered today.
The company's revenues have reached 1,139 million euros, thus meeting the company's forecasts, which placed revenues in a range of between 1,100 and 1,150 million euros. However, this figure has not pleased investors much since, although it is only slightly lower than the 143 million predicted by analysts, the market has reacted by causing Spotify's shares to fall, which would be understood as a disappointment.
Looking at the forecasts for the second quarter of 2018, the company expects to reach between 79 and 83 million paying subscribers, while by the end of the year they expect to end with between 92 and 96 million.
Key aspects of its IPO
Spotify debuted on the stock market on March 3, with a rise of 12.89% (124.31 euros), to reach 149.01 dollars per share, which allowed it to raise its market capitalization to 30,000 million dollars (25,027 million euros).
It is also worth noting its particular debut on the New York Stock Exchange through the "direct listing" procedure. This formula, which caught the attention of investors, involves the direct sale of shares without the need to set an initial reference price, thus avoiding the costs of intermediary banks and the cost of stock trading commissions charged by banking groups to subscribe to the offer.
To this we must add that Spotify became the first European technology company to be listed directly on the Nasdaq, the market par excellence for technology companies, without first going through the European markets.
As Daniel Ek, CEO and founder of Spotify, explained, the reason for choosing this formula is to maintain the company's identity regardless of the scenario in which they operate: "Spotify is not raising capital and our shareholders and employees have been free to buy and sell our shares for years," he said on the official blog.
The music streaming service currently has 170 million monthly active users, 30% more than in the same period of the previous year, and expects to end the year with more than 208 million active users.
