Spotify reported its first quarterly earnings since going public last month, and its stock quickly took a nosedive Wednesday in after-hours trading.

Shares of the music streaming service fell about 8 percent after investors were seemingly disappointed by the company's outlook.

Spotify met most expectations: 170 million monthly active users and 75 million paid subscribers. Revenue was right in line with expectations at around $1.34 billion.

However, guidance for the current quarter was uninspiring. Revenue growth looks flat-ish, projected to be between $1.3 billion to $1.6 billion. (Thomson Reuters estimated less than $1.6 billion.) And Spotify is still losing money ー more than $200 million last quarter, though that's less than the previous quarter.

Not everyone is disappointed in Spotify. Mike Vorhaus, the president of Magid Advisors, said he was impressed by the company's performance in a crowded, competitive market.

"When you are competing successfully with names like Apple and Amazon, and you continue to grow, that's a very very good sign," he said in an interview Wednesday with Cheddar.

Vorhaus said Spotify has great potential, and the company already has a critical mass of reliable customers and two strong business models.

"As advertising increases in the mobile world, that is going to be big for Spotify as well," he said.

Spotify (announced a mobile redesign) [] last week that has users and tech fans buzzing. The new app is purportedly faster and will make it easier for non-paying users to access specific songs from playlists. There will also be a new "Data Saver" mode that will help users reduce their data usage by up to 75 percent when using 3G.

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