Spotify subscriptions numbers are down due to having to cut 1 million accounts in Russia following the beginning of the war in Ukraine.
But even cutting those 1 million they still picked up 2 million NEW accounts worldwide.
Wall Street, however, was ultimately left unimpressed with one Spotify number in particular amid its newly-unveiled Q1 results earlier this week.
Spotify posted a Q1 gross profit margin in the mid-20s (25.5%), and announced that it expected this figure to remain flat in Q2.
Investors have been wanting to see this gross margin ratchet up into the 30-percents, largely as a result of Spotify’s original content strategy in podcasting.
The consequence?
Spotify’s already-tanking share price on the NYSE hit new lows this week: It closed at $96.67 on Wednesday (April 27) – down 60% on the start of 2022, and nearly a quarter of the size it was at Spotify’s peak, at $364.59 in February last year.
Now this is particularly interesting due to the fact that Spotify runs off of the work of songwriters and musicians that it DOES NOT PAY. Then they take that money from music earnings and give it to Pocasters like Joe Rogan and the Royal Meghan and Harry. Something has to give. Indeed.
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