Spotify Swings to a Second-Quarter Loss, Missing Estimates

Spotify, the music streaming giant, reported a second-quarter loss, missing analysts' estimates. The company's financial results were impacted by higher-than-expected expenses related to employee compensation. Spotify swung to a loss in the second quarter, with the company's earnings per share coming in below the expected figures. The higher-than-anticipated expenses were primarily driven by employee compensation costs, which weighed on the company's overall financial performance. Despite the loss, Spotify managed to grow its total monthly active users (MAUs) to 433 million, up 19% year-over-year. The company's premium subscribers also increased, reaching 188 million, a 14% year-over-year growth. Spotify's financial results, while not meeting analysts' expectations, reflect the ongoing challenges the music streaming industry faces in balancing growth, profitability, and employee compensation. The company's focus remains on expanding its user base and driving subscriber growth, while also managing its costs effectively.