Music streaming giant Spotify said Wednesday that it swung to a first-quarter profit and grew its user base to 130 million premium, or paid, subscribers and 286 million total active monthly users as of the end of March.
However, it reduced its full-year revenue guidance range, citing the advertising hit caused by the novel coronavirus pandemic and currency exchange rates.
Management said the company was less advertising-dependent than other media companies, saying ads account for only around 10 percent of its total revenue.
Spotify CEO Daniel Ek on Wednesday's earnings conference call predicted that the broader shift from linear to on-demand audio usage would "likely be accelerated by the COVID-19 crisis."He said while many observers.