Spotify CEO Daniel Ek Says “Very Dire Macro Environment” Isn’t Stopping Company’s Momentum; Strong Subscriber Outlook Boosts Battered Stock
deadline.comSpotify CEO Daniel Ek says the “dire macro environment” of inflation and other headwinds has not slowed the company’s momentum.He delivered the comments on the company’s second-quarter earnings call.
The company reported total revenue of $2.9 billion, up 23% and just ahead of Wall Street analysts’ consensus expectation. Net losses widened to $126.8 million, or 86 cents a share, which missed the Street’s consensus, though any concerns about profitability were more than offset by strong subscriber trends.The company said it had 433 million monthly active users by the end of the quarter, which was 5 million more than its projections.
Its roster of premium subscribers hit 188 million, which was 1 million more than the company’s guidance.Ek said the audio category is “differentiated from all the other media that’s out there” in terms of its capabilities for connecting with customers and delivering value for advertisers.
Not only are cars a “massive use case, in particular in North America,” but people outside of cars are increasingly listening to earbuds and headphones and Ek says that presents “a huge opportunity in local advertising.
Read more on deadline.com
