Spotify stocks fall as executives seek to reassure amid Rogan controversy

theguardian.com:

Spotify on Wednesday forecast current-quarter subscribers lower than Wall Street expectations, but executives sought to reassure investors that growth had not cratered even as it deals with the fallout from the controversy around The Joe Rogan Experience podcast.

The company’s shares fell as much as 18% in late trading after Spotify reported the subscriber outlook.

In an interview with Reuters after the report, Spotify’s chief financial officer, Paul Vogel, said this year would not be that much different than last in terms of users and subscribers.

“While we have not given full year guidance anymore on subscribers… we don’t expect a material difference in the net additions for either users or subscribers in 2022 relative to 2021,” Vogel told Reuters.

Shares pared losses and were down between 3% to 9% after the initial shock.

The outlook overshadowed fourth-quarter revenue, which came in higher than analysts’ estimates, as the music streaming company sold more advertisements and newer services such as podcasts, while recording a healthy 16% increase in paid subscribers for its premium service.

Total monthly active users rose 18% to a record 406m.

The company, however, forecast current-quarter paid subscribers of 183m, below expectations of 184m. Revenue is expected to meet estimates of 2.60bn euros.

The subscription music streaming service has invested over a $1bn in the podcasting business, led by marquee exclusive shows such as The Joe Rogan Experience.

But the allure of the podcast star also drew condemnation after his show aired controversial views around Covid-19, drawing protests from artists Neil Young and Joni Mitchell.

Rogan, a popular internet commentator, has since apologized and Spotify said it would start adding