Falling after the report

Shares in music service Spotify fell more than 10 per cent to $171.9 after the close of principal trading on Wednesday, February 2, due to the company's weaker-than-expected subscriber forecast.

The service's shares were down as much as 18% at the low, Reuters writes.

Chief Financial Officer Paul Vogel said in an interview for Reuters that the rate of growth in subscribers as well as users in 2022 would be little different from previous years. Spotify's advertising revenues are growing twice as fast as its subscriptions, analysts said.

The music service has sold more ads and new services, thus, with revenue coming in above analysts' estimates.

The number of premium paid members increased by 16%. The number of monthly active users grew by 18% to 406 million, a record high.

However, the music service has invested more than $1bn in podcasting.

Spotify announced that podcasts accounted for a record high proportion of time spent on its platform.

forecast from service

The company predicts that the number of paid subscribers will be183 million in the current quarter. Also, Spotify said it will no longer offer annual recommendations for subscribers.

Service was founded by Daniel Ek and Martin Lorentzon in 2006.