Following the close of trade, Spotify shares plummeted 4% as a result of the sector’s dismal performance and Fabet’s (the parent company of Google) quarterly revenues that came in below market expectations when advertisers cut back on spending.
Spotfai, whose market share dropped by 58.
5 percent this year, said that the margins of the third quarter profit came less than what I expected, and blamed for the decline in advertising returns, currency rates, and intellectual property payments retroactively for the song and music publishers.
“This is a first sign of the worries businesses have about the economy.
Although it won’t have a long-term impact on us, it will undoubtedly have one in the near term. It has also contributed to the drop in the gross profit margin that we attained in this quarter, according to Reuters.
Increased audience
The number of active users per month increased to 456 million in the third quarter, an increase of 23 million in three months, while Spotfai and analysts of 448. 6 million exceeding 448. 6 million.
The number of distinguished subscribers, who account for the majority of the company’s sales, increased by 13% to 195 million, beating analyst expectations of 194 million.
In this quarter, the advertising-funded Spotify increased by 19 percent to 385 million euros (or 383 million dollars), with hundreds of thousands of users on every region but Europe, where Spotify claimed it was impacted by the challenging economic conditions in the continent.
Spotfai’s revenue for the third quarter reached three billion euros (three billion dollars), an increase of 21 percent over the same period last year, consistent with analysts estimates, according to data from Rafinitiv.
The business cited the sluggish advertising market in announcing that total profit margins declined to 24.7%, which is lower than anticipated.
Spotfi’s low profitability cause the digital ad market to stagnate.
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