Spotify reported today that it added 8 million new subscribers in the last quarter as it expanded its lead over competing Apple Music.
The Swedish streaming technology leader said in its Q2 earnings report that it now has a total of 108 million premium subscribers, an increase of 31% from the same period one year ago.
Apple revealed in June that the streaming service has 60 million subscribers, a number that includes people in the free three-month trial. Apple had previously said it had 50 million paid subscribers in January, not counting free trials.
The point line: While Spotify has added a total of 12 million subscribers so far in 2019, Apple Music has added fewer than 1
In total, Spotify reported Q2 revenue that exceeded analyst expectations, although subscriber numbers failed to hit the high end of the guidance. Spotify reported earnings before the stock market opened and that the weak subscription loss sent the stock down 2.04% to $ 152.10 per share in premarket trading.
The company's second-quarter revenue was $ 1.86 billion, up 31% from the same period a year ago, beating analysts' estimates of $ 1.83 billion.
Spotify posted a $ 84 million loss for the second quarter, down from $ 158 million in the first quarter and $ 439 million the previous year.
Total monthly active users, including the free ad-supported level, grew 29% in the second quarter to 232 million, from 180 million in the second quarter of 2018.
The company partially attributed the expansion of podcasting services.
While many of these numbers seemed solid, Spotify executives acknowledged some disappointment with their subscriber numbers.
The company had offered guidance of 107 million to 110 million subscribers during the quarter; so the figure of 108 million was below the midpoint. Spotify attributed this lack to a weakness in the plan aimed at students.
"As we discussed earlier, our goal is to perform at about the 70th percentile in our guidance area and we missed subs," the company said in its revenue release. "It's up to us. The good news is that the deficiency was performance-related, rather than soft in the business, and we expect to make up the lost ground before year-end."
For the remainder of 2019, the company predicts subscriber numbers will rise to between $ 110 million and 114 million in the 3rd and 120 million and 125 million in the fourth quarter.