Music streaming platform Spotify has reported strong user growth, reaching 777 million monthly active users at the end of June, an increase of 16 million from the previous quarter.

However, the figure fell one million short of the company's forecast, while its projection of slower subscriber growth in the third quarter weighed on investor confidence, sending its shares lower in early trading on the New York Stock Exchange.

The company said it added seven million paying subscribers during the quarter to reach 300 million, exceeding expectations. Spotify also recorded a 61 per cent increase in quarterly operating profit to 655 million euros, while revenue rose 14 per cent to 4.8 billion euros, in line with its financial projections.

Spotify Co-Chief Executive Alex Norstrom described the results as evidence of a healthy and expanding business with significant growth opportunities.