Almost hitting the spot apparently wasn't enough.

Paid-music service provider Spotify Technology SA (SPOT - Get Report) on Thursday, Nov. 1 said it earned €0.23 a share, well above the €0.24 loss that was expected by analysts surveyed by Bloomberg. It generated €1.35 billion of revenue, edging out the €1.33 billion estimate.

Nonetheless, the Stockholm-based company's shares sunk as investors zeroed in on disappointing revenue guidance and only modest forecasts for additional subscriber growth going into the fourth quarter.

Shares were down $12.82, or 8.57%, at $136.87 in early trading on the New York Stock Exchange on Thursday.

Spotify said it gained 4 million premium subscribers in the third quarter, within its forecast range of between 2 million and 5 million. It had 87 million premium subscribers in total at the end of the third quarter.

But looking ahead, the company said it expects fourth-quarter revenue of between €1.35 billion and €1.55 billion, below average analysts' estimates. Spotify also said it anticipates total premium subscribers in the range of 93 million to 96 million by the end of this year.

Swept up by the global selloff in tech stocks over the past month, shares of Spotify have erased their roughly 30% gain following the company's April U.S. stock market debut