Spotify stocks fall as executives seek to reassure amid Rogan controversy

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.

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

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 .

The subscription music streaming service has invested over $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 content advisories to episodes discussing Covid.

Ek acknowledged the Rogan controversy at the outset of the earnings conference call, saying it presented learning opportunities. He said he was proud of the steps Spotify took following the concerns raised by the medical and scientific communities and he said policies were developed with input from internal and external exports.

Quarterly revenue rose to ¤2.69bn ($3.04bn) for the quarter from ¤2.17bn a year earlier, and above the ¤2.65bn expected by analysts, according to IBES data from Refinitiv.

Revenue from users who hear advertisements rose 40% to ¤394m or 15% of total revenue.