SPOT: Spotify Stock Unwinds Big Post-Earnings Gain as Traders Turn Down the Volume

In its own Wrapped 2023, Spotify ended the year with 602 million monthly active listeners, a 23% rise. But it could not strike the profit chord.

• Spotify SPOT reported fourth-quarter earnings results on Tuesday before the opening bell. The Swedish music streaming platform posted user growth ahead of consensus, but once again failed to fine-tune its profits, churning out a per-share loss of 36 cents. Shares opened the session higher by more than 10% but ended the day’s trading with a 4% pop.
• Spotify’s fourth quarter wrapped up with 602 million monthly active listeners, up 23% from the same time a year ago and above Wall Street’s calls for 601 million. Paid subscribers jumped 15% in the past 12 months to 236 million, topping estimates of 235 million. Revenue for the final three months of 2023 came in at €3.67 billion ($3.94 billion).
• Despite its consistent growth, Spotify can’t get its profits into a steady rhythm. The company laid off some 2,300 employees in three rounds last year, increased its prices across tiers, and is pulling in more revenue from ads. After all that, of the past four quarters, only the third one was profitable, sending the company into a net loss of €532 million (roughly $570 million) for the year.