Shares of Spotify Technology S.A. (SPOT) - Get Report fell 2.8% to close at $135.45 in trading Wednesday after the music streaming company missed revenue expectations and provided light 2019 guidance.
Spotify, however, was profitable with operating income, net income and free cash flow being positive for the first time in the company's history. The company reported earnings of €442 million euro ($503.4 million), €0.36 a share, which topped analysts' estimates of a loss of €0.16 a share.
The bad news, however, was that while revenue jumped 30% to €1.495 billion, Wall Street was looking for revenue of €1.501 billion.
The company reported that the number of monthly active users grew 29% to 207 million, outperforming both its own internal guidance and Wall Street's expectations of 203 million monthly active users during the period.
Separately, Spotify announced that it was bolstering its podcasting efforts through the acquisition of Gimlet Media Inc. and Anchor. The company didn't disclose the purchase price of the two podcast platforms.
"These acquisitions will meaningfully accelerate our path to becoming the world's leading audio platform, give users around the world access to the best podcast content, and improve the quality of our listening experience as well as enhance the Spotify brand," said Daniel Ek, Spotify co-founder and CEO.