The fall earnings season is upon us, with many technology and consumer internet stocks reporting their third-quarter results at the end of October. Spotify (NYSE: SPOT), the global leader in audio streaming, released its earnings on Oct. 25. Wall Street was not happy with the report, sending shares down over 10% the following trading day.

Spotify again failed to expand its gross margin and generate a profit in the third quarter of 2022. Should investors be concerned about the music streamer's prospects going forward? Let's take a look. 

Before hitting the troubling parts of Spotify's Q3 results, let's take a look at where the company is executing well, which is the growing popularity of its platform. In the third quarter, Spotify's monthly active users (MAUs) hit 456 million, up 20% year over year. This was a 23 million increase from Q2, a record net addition. Growth is mainly coming from its Rest of World segment, which includes everything that isn't North America, South America, and Europe. Rest of World users are now 26% of overall MAUs, up from just 11% in 2018. 

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Source Fool.com