Spotify drops 11% for worst day in two years on weak guidance

▤ Summary

Spotify missed Wall Street expectations and issued weak third-quarter guidance, sending its shares down more than 11%. Revenue grew 10% year over year, but higher personnel, marketing, professional services, and social charges pressured results. The company continued to grow monthly active users and premium subscribers while ad-supported revenue slipped slightly. Spotify said it plans to improve its advertising stack with new tools and more focus on business and automated ads, and it also expanded its AI DJ request feature and audiobooks into more markets.

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