Spotify warns Q3 profit may fall on €200 million marketing/AI spend
Spotify says its third-quarter profits might drop because it's spending on marketing and AI-related investments that are expected to drive approximately €200 million in incremental operating expense for the full year.
The company expects 788 million monthly active users this quarter, just shy of what analysts hoped for, mainly due to changes in places like India and Indonesia, where they're deprecation of old lower-end Android devices and limiting free features to prep for price hikes.
Spotify forecasts €5 billion revenue
Even with lower profit projections, Spotify's third-quarter revenue forecast of €5 billion actually beats Wall Street's estimates.
About a quarter of users are already trying out cool tools like "Talk to Spotify" and "Studio by Spotify Labs."
Plus, recent deals mean coming paid tool for fan-made covers and remixes are now possible, thanks to Merlin.