However, in the past six months, the Spotify stock has slipped 24.8% vs. a 15% slide in its industry.
Despite posting robust revenue growth and steady rise in monthly active users (MAUs), shareholders are yet to feel comfortable about the stock.
One thing to notice is how Spotify is performing better in emerging markets, much better than established markets w.r.t. MAU growth.
But these regions, especially geographies like Latin America and Southeast Asia offer lower average revenue per user (ARPU) coupled with the negative headwind of forex rates.
LOOKING BACK
In the previously reported quarter, Spotify defied Wall Street expectations of a loss by posting a profit. However, the music streaming platform’s revenue missed street projection, pulling the stock down shortly after the announcement.
Monthly active users then grew 28% to 191 million at Q3-end, helped by solid growth in Latin America and Rest of the World. Driven by Student and Family Plans, premium subscriber base had soared 40% to 87 million during this period.
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