Spotify has announced another quarter of record profits, a year after it increased the prices of its Premium subscription plans for the first time.
The Swedish audio streaming service reported an operating income of 266 million euros ($289 million) for the second quarter, compared to a loss of 247 million euros ($268 million) in the same period last year. The number of monthly active users rose by 14% year-over-year to reach 626 million.
“It’s an exciting time at Spotify. We are continuously innovating and proving to be not only a great product but also a thriving business,” said CEO Daniel Ek in a statement. “Our progress has surpassed even our own expectations, which sets us up well for the future.”
Following the positive earnings report, Spotify’s stock surged nearly 14% in pre-market trading on Tuesday.
In June, Spotify announced an increase in prices for its Premium users in the U.S. From this month, individual plan subscribers will pay $12, an increase of $1, while those on Duo plans will see their fees rise by $2 to $17, and Family plans will go up by $3 to $20. This price hike follows a previous increase of an average of $1 for members after 13 years without a change.
Despite these increases, Spotify managed to add seven million net subscribers in the last quarter, surpassing its earlier guidance by one million.
Spotify remains the leading audio streaming platform globally, with a Bloomberg analysis indicating that its users are the least likely to cancel their subscriptions compared to those of other audio or video streaming services.
Nonetheless, the company has faced challenges in the past. Spotify’s stock fell by over two-thirds in 2022 as it dealt with multiple quarters of operating losses. In January 2023, the company announced it would lay off 600 employees, and it later cut 1,500 jobs, accounting for about 17% of its workforce.