Proactive Investors - Spotify is expected to post a year-over-year drop in earnings when the music streaming giant posts its first quarter 2023 financial results before the market open on Tuesday, April 25.
Analysts, on average, expect Spotify to post a loss per share of €1.04 for the quarter, compared to earnings per share of €0.21 in the first quarter of 2022.
However, year-over-year revenue growth is expected, with analysts forecasting €3.36 billion in revenue compared to €2.66 billion in the year-ago quarter.
Spotify said when releasing its fourth quarter 2022 results, as of January 31, 2023, it expected to post an operating loss of €194 million for the first quarter, including a €19 million hit from unfavorable exchange rates and a €35 million to €40 million impact due to severance-related charges.
The company said it anticipates revenue of €3.1 billion and gross margins of 24.9%, representing an improvement in music and podcasting.
Monthly active users were expected to grow by 11 million to 500 million, a milestone Spotify said during a March event that it has already surpassed.
Premium subscribers were forecast to grow by 2 million in the quarter, bringing Spotify’s premium subscriber count to 207 million.
Spotify's US-listed shares fell ahead of its results, down 1.4% at $US131.98 on Monday afternoon.
-- Updated with share price --