On Friday, Spotify Technology SA said that it was able to uncover that 2 million users of its free service who had been able to block advertising even without paying, emphasising a possible revenue risk for the soon-to-be-public company.
In an amended version of the company’s share prospectus that was filed last month, the Swedish company said that it continues to be affected by third-party attempts to obtain unauthorised access to the platform’s premium service.
Previously, the music-streaming company included the 2 million users in its calculations for some of the key performance indicators of the firm, including ad-supported users, MAUs, content hours, and content hours per MAU.
Spotify said that the company currently does not have the information to adjust the key performance indicators that were previously provided, and as a result, certain metrics may be ‘overstated’ in the prospectus of the firm.
According to its website, the company had approximately 157 million active users as of December 31, 2017, of which around 71 million were paid subscribers who have access to their ad-free versions of the service.
This week, Spotify had filed for a direct listing of its shares, rather than a traditional IPO.
The direct listing will allow employees and investors sell shares without the company raising new capital or employing a Wall Street bank or broker in order to underwrite the offering.