Spotify shares fall 9% as soft guidance outweighs Q1 earnings beat

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. While second-quarter MAU guidance was slightly above Wall Street's expectations, net premium subscribers had been expected to grow to just over 300.4 million, according to analysts polled by FactSet. The guidance is "subject to substantial uncertainty," Spotify said in an earnings presentation. Operating income was guided to 630 million euros, while the Street was expecting closer to 680 million euros, per FactSet estimates. Spotify has repeatedly hiked prices for its premium subscription in an attempt to improve profitability. In February, the company increased the subscription price from $11.99 to $12.99 a month in the U.S. At Monday's close, the stock was down 14% year-to-date.