Spotify’s share prices plunged by as much as 10 per cent after publishing its first earnings report as a publicly listed company.
Last month the Swedish company enjoyed an unconventional but better-than-expected float on the New York Stock Exchange that valued the digital music giant at more than $26bn.
But Spotify clearly failed to impress investors despite reporting user growth and sales figures that matched the forecasts it issued only six weeks ago.
The firm grew net sales by 26 per cent to €1.14bn for the three months to March and reached 75 million paying subscribers, up 45 per cent from a year ago.
Analysts said the drop in share prices suggests that investors were expecting better results.
Spotify has recently launched in four new markets: Israel, Romania, South Africa and Vietnam. This brings its total footprint to 65 countries and territories and marks its first entry into an African continent.
Spotify was admitted to the New York Stock Exchange in what was been described as an unusual float: the company did not sell any shares.
The initial public offering (IPO) valued the firm at $26.5bn, well above the value of other tech companies including Twitter.
Co-founder and CEO Daniel Ek said earlier this week that the float puts Spotify on “on a bigger stage”.