Spotify has reported a record profit for the second quarter, marking a significant turnaround since last year when it faced substantial losses. The Swedish audio streaming platform posted an operating income of 266 million euros ($289 million), compared to a loss of 247 million euros ($268 million) during the same period in 2022. The company also saw a 14% increase in monthly active users, reaching a total of 626 million.
In a statement, CEO Daniel Ek expressed optimism about the company’s future, highlighting their ongoing innovation and positioning as not just a top product but an increasingly successful business. Following the positive earnings report, Spotify’s stock surged nearly 14% in pre-market trading.
Earlier this year, Spotify announced a price increase for its Premium plans in the U.S. Starting this month, individual plans now cost $12, while Duo plans are priced at $17 and Family plans at $20, marking the first price hike in 13 years on average. Despite these increases, the platform added seven million new subscribers in the quarter, surpassing its expectations.
According to a Bloomberg analysis, Spotify remains the leading audio streaming service globally, with users exhibiting the lowest likelihood of canceling their subscriptions compared to competitors. However, the company has faced significant financial challenges in recent years, including a decline in stock value in 2022, which saw it lose over two-thirds of its worth. Additionally, the company underwent significant layoffs, reducing its workforce by about 17% in early 2023.