Shares of the Swedish company, up about 80 per cent since the start of this year, fell 3 per cent to $253 before the U.S. market open
The results overshadowed a rebound in demand for music streaming as more users signed up for its services and paid subscribers reached 138 million, ahead of Wall Street estimates of 136.4 million.Spotify, which leads the market for music streaming ahead of rivals such as Apple Inc and Amazon.com Inc, earns from paid subscriptions and by showing ads to non-paying users.
However, the company said it expected to hit its full-year financial targets, assuaging investor concerns that a drop in commuting in the pandemic might hit streaming services. Average revenue per user for the second quarter stood at 4.41 euros, down 9 per cent from a year earlier.Spotify forecast total revenue of 1.85-2.05 billion euros for the third quarter. Analysts were expecting 2.01 billion euros.
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