Total monthly active users rose 10% year-over-year to 678 million while premium subscribers grew 12% to 268 million.

NYSE-listed shares of Spotify Technology SA (SPOT) declined over 8% in Tuesday’s pre-market session after the audio streaming company’s first-quarter revenue fell below analyst estimates, and second-quarter operating income projections failed to cheer investors.

However, the company reported growth in its monthly active users during the first quarter, a generally weak period for the metric. Total monthly active users (MAUs) rose 10% year-over-year (YoY) to 678 million. Premium subscribers also increased 12% YoY to 268 million during the quarter.

The audio streaming giant reported a 15% YoY rise in its total revenue to €4.19 billion ($4.77 billion) but fell short of an analyst estimate of €4.2 billion.

Average revenue per user (ARPU) for its Premium subscribers increased by 4% to €4.73.

CEO Daniel Ek highlighted that the underlying data is currently very healthy, as engagement remains high, retention is strong, and, due to its freemium model, users have the flexibility to stay with the company even when things feel uncertain.

“So yes, the short term may bring some noise, but we remain confident in the long-term story, and the direction we’re heading in feels clearer than ever,” he said.

For the second quarter, Spotify expects total MAUs to reach 689 million, implying the addition of approximately 11 million net new MAUs during the quarter.

Total premium subscribers are expected to reach 273 million in Q2, indicating the addition of approximately five million net new subscribers during the quarter.

Meanwhile, the company projected total revenue of €4.3 billion, assuming approximately 170 basis points of headwind to growth YoY due to foreign exchange rate movements. Operating income is expected to hit €539 million, which fell short of an analyst estimate of €557.5 million.

Spotify shares have gained over 30% in 2025 and have more than doubled in the past 12 months.

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