Spotify’s shares fell 5% after missing Wall Street’s expectations and providing weak guidance for the current quarter. The company reported a net loss of 86 million euros, down from a net income of 225 million euros a year ago. Revenues rose 10% to 4.19 billion euros from the year-ago period.

For the third quarter, Spotify expects revenues of 4.2 billion euros, falling short of the 4.47 billion euro estimate. Monthly active users increased by 11% to 696 million, with paying subscribers up 12% to 276 million. The company aims to reach 710 million monthly active users and add 5 million premium subscribers in the coming quarter.

Spotify introduced a request feature for its AI DJ, which has seen engagement double over the last year. An indie rock band, Velvet Sundown, on the platform gained attention for quickly amassing over a million listeners, sparking speculation over AI in music creation. The band was later confirmed to be mainly AI-generated.

In 2024, Spotify achieved its first full year of profitability and has seen its shares rise by 57% this year. The company continues to focus on growth and innovation in the music streaming industry.

Read more at CNBC: Spotify stock falls on revenue miss, lackluster guidance