Spotify Q1 results: Revenue increases by 14%, in line with estimates

Spotify on Tuesday reported quarterly monthly active users (MAU) below its own estimates, as the Swedish music streaming company chose to boost profit instead of spending more on marketing activities to draw in more listeners.

First-quarter MAUs rose 19%, but missed Spotify’s own guidance and a median of analysts’ forecasts of 618 million. It also forecast current-quarter MAUs at 631 million, missing estimates of 636.3 million, according to IBES data from LSEG.

Shares of the company were down 1.6% in premarket trading.

Premium subscribers, who account for most of the company’s revenue, rose by 14% to 239 million, in line with estimates.