Spotify Technology SA (NYSE:SPOT) issued disappointing guidance on subscriber numbers for its first quarter alongside results for the last three months of 2021.
The music streaming platform, which is currently embroiled in a controversy over a Joe Rogan podcast, said it expects to report 418mln monthly active users in the first quarter of 2022, slightly above market forecasts of 417.8mln.
However, it predicted that total premium, or paid, subscribers will reach 183mln, which is below analysts' expectations for 184mln.
Spotify chief executive Daniel Ek said it is "too early to know" how the controversy over Joe Rogan's podcast, which attracts an average of 11mln listeners per episode, has impacted the streaming company.
Musicians such as Neil Young and Joni Mitchell have asked for their music to be removed from Spotify after criticism that the Rogan podcast helped to spread misinformation about COVID-19 vaccines.
Rogan has since apologized and Spotify said it would start adding content advisories to episodes discussing COVID.
Spotify recorded 406mln monthly active users in the fourth quarter of 2021, up from 381mln in the year-ago period and at the top end of its guidance of 400mln-407mln, slightly beating analysts' expectations.
Premium subscribers grew 16% to 180mln in the final quarter.
The group said it had 3.6mln podcasts on its platform at the end of the quarter, up from 3.2mln at end-Q3, with the number of monthly active users engaging with podcast content showing double-digit growth in the period.
The disappointing subscriber guidance overshadowed results for the fourth quarter, which came in above market forecasts.
Revenue grew by 24% to €2.69bn, compared with market expectations of €2.65bn, driven by "significant" strength in advertising and favorable forex movements.
Premium revenue grew 22% to €22.9bn, while ad-supported revenue soared by 40% €394mln.
Operating losses amounted to €7mln in the last three months of the year.
Spotify forecast total revenue of €2.60bn for the first quarter and operating losses of €67mln for the first quarter.