Wall Street doesn’t like Spotify’s first-ever earnings report

Here’s a first look at Spotify’s Q1 earnings, which are in line with the guidance it offered up earlier this spring: In its first-ever quarterly report since going public last month, the streaming music company reported revenue of 1.14 billion euros, operating losses of 41 million euros, 75 million paid subscribers and a gross margin of 24.9 percent.

The company had told Wall Street to expect revenue of up to 1.15 billion euros, losses of 50-80 million euros, up to 76 million paid subscribers and a gross margin of up to 24 percent.

(For now, we’ll report Spotify’s numbers in euros, as the Swedish company does in its results, and we’ll convert them into dollars in a bit.)

Investors see something they don’t like, at least for now: SPOT shares are down more than 6 percent in after-market trading.

Perhaps they would like to have seen Spotify handily beat its revenue and subscriber projections. Then again, given that Spotify provided its first guidance with just a couple weeks left in the quarter, it could have been accused of gaming earnings had it dramatically over-performed today.

You should be able to get a better sense of what the Street is concerned about by listening into Spotify’s first-ever earnings call, at 5 pm ET today.

Here’s RBC analyst Mark Mahaney’s cheat sheet, so you can get a sense of what Wall Street was expecting to see.

This article originally appeared on Recode.net.

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