Spotify, SiriusXM Stand Out This Earnings Season Amid Virus Crisis

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Spotify grew its paid subscriber base to 130 million in the first quarter, with CEO Daniel Ek predicting that the broader shift from linear to on-demand audio usage would 'likely be accelerated by the COVID-19 crisis.'

say they listen to music via a streaming service more as many states are under stay-at-home orders, while 40 percent said their music consumption is "about the same" as it was months ago. Some 10 percent of Americans say that they've subscribed to a music streaming service since January 1.

However, SiriusXM CFO David Frear said "we can track the listening changes directly to commute times" and "have picked up quite a bit on consumer electronics devices with the whole growth in smart speakers," even if that doesn't make up for the commute-related listener loss. SiriusXM's stock rose after the earnings update, but has dropped 1.6 percent from the night before its earnings update through the end of Thursday trading.

Evercore ISI analyst Kevin Rippey similarly titled that day: "More in rhythm than we thought." He acknowledged: "Spotify first-quarter results are catching bears offsides this morning, ourselves included. We had been expecting a weaker user and subscriber result/outlook, as app data into the print was showing a sharp decline in late March."

He also said that the firm's podcasting revenue growth was about three times its "very strong" podcast usage growth, suggesting that this meant the company was gaining share. Pittman added that there was "real growing interest in audio before the downturn" from marketers, concluding: "Our hope and our expectation is that audio will benefit during this downturn."

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