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Spotify Slides After Saying Pandemic Will Hurt User Growth

  • Audio service added fewer users than expected to start year
  • Spotify looks to squeeze more from its paying customers
Spotify on iPhone 6

Source: Getty Images

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Spotify Technology SA started the year with slower user growth than expected for its streaming audio service, and warned its pace throughout 2021 could slip due to uncertainty related to the pandemic and the staggered reopening of society.

The owner of the world’s most popular paid audio service ended the first quarter of the year with 356 million monthly active users, nearly 6 million below what Wall Street analysts had forecast, and said it would end the year with 402 million to 422 million, also below estimates. Spotify shares fell as much as 11% in New York trading Wednesday.