Wednesday afternoon marks the first time Spotify reported its results as a public company.
Sony then sold 17.2% of these shares on the New York Stock Exchange during Spotify's opening 24 hours of trading - generating $260m.
Spotify lost 169 million euros, or 1.01 euros per share, in the first quarter, narrowing from a loss of 173 million euros at the same time past year.
Revenue aligned with Spotify's previous guidance of 1.1 billion euros - 1.15 billion euros, however, fell below Reuters analyst expectations for 1.143 billion euro. Rounding out to losses of €1.01 per share, the report considerably missed what Wall Street had expected to be just losses of €0.23 per share, according to Business Insider. By comparison, Apple Music, Spotify's next closest competitor, hit 40 million paid subscribers last month.
This included 75 million paying subscribers, up 45 percent year-on-year, from which the company generates the vast majority of its revenue.
Besides perhaps hoping for more robust growth to start the year, investors may have been disappointed with management's outlook for the current quarter ending in June.
Spotify's gross margin was above its guidance range at 24.9 percent in Q1, topping its expectations of 23-24 percent. Spotify said it was impacted by changes in foreign exchange rate.
Spotify said it expects monthly active users to climb to between 175 million and 180 million and to garner 79 million to 83 million paid subscribers. TME is controlled by internet giant Tencent and also holds a stake in Spotify.
The rising popularity of Spotify's subscription services have led stock market investors to once again prize the music industry after shunning it for more than a decade amid a wave of piracy by users and in the face of major technology shifts. The good news, though, is that Spotify's subscriber base continues to impress, even as the Swedish-based company faces increased competition from Apple.