Spotify has reported another quarter of record profits, marking a significant turnaround since it raised the price of its Premium plans for the first time last year.
The Swedish audio streaming company recorded an operating income of 266 million euros (approximately $289 million) in the second quarter, compared to a loss of 247 million euros ($268 million) during the same period last year. Additionally, the number of monthly active users rose by 14% year-over-year, reaching 626 million.
“It’s an exciting time at Spotify. We continue to innovate and demonstrate that we are not just a great product, but increasingly a thriving business,” said CEO Daniel Ek. “We are achieving this ahead of our own expectations, which bodes well for our future.”
In response to the strong earnings report, Spotify’s stock surged nearly 14% in pre-market trading on Tuesday.
Earlier in June, Spotify announced price increases for its U.S. Premium users. Effective this month, individual plan subscribers will see their fees rise by $1 to $12, duo plan subscribers will pay $2 more for a total of $17, and family plan subscribers will incur an additional $3, bringing their total to $20. This increase follows a membership cost hike last July—the first in 13 years—averaging $1.
Despite the price hikes, Spotify added seven million net subscribers in this quarter, exceeding its previous guidance by one million.
According to a Bloomberg analysis, Spotify remains the leading audio streaming service globally, with users less inclined to cancel their memberships compared to other audio or video streaming platforms.
However, the company’s financial journey has faced challenges. In 2022, Spotify’s stock fell by over two-thirds as it encountered multiple quarters of operating losses. In January 2023, the company announced the layoff of 600 employees, later cutting another 1,500 jobs, which represents about 17% of its workforce.