Spotify rose 7 percent in New York today despite issues with merchandise replenishment and weaker growth.
Although the volume transacted via the company’s platforms rose by 35 percent to almost 42 billion US dollars (36 billion euros), it fell short of experts’ expectations. The 46 percent increase in sales to a good 1.1 billion dollars was also lower than analysts had forecast. Shopify’s services are aimed at small and medium-sized businesses. Shopify generates most of its revenue in North America.
Meanwhile, operations incurred a loss of four million dollars after an operating profit of about 50 million dollars a year ago. This was mainly due to significantly increased costs for marketing and sales as well as research and development, as the company founded by the German-Canadian entrepreneur Tobias Lütke announced in Ottawa on Thursday. On the bottom line, the group earned $1.15 billion, more than its revenue. However, this is only due to the revaluation of equity investments.
For more updates, follow us on Twitter:@JRC_Capital