Spotify has reported a record profit for the second quarter, achieving an operating income of 266 million euros ($289 million) compared to a loss of 247 million euros ($268 million) during the same period last year. The company also saw its monthly active users rise by 14% to reach 626 million.
CEO Daniel Ek expressed optimism about Spotify’s progress, stating, “It’s an exciting time at Spotify. We keep on innovating and showing that we aren’t just a great product, but increasingly also a great business. We are doing so on a timeline that has exceeded even our own expectations. This all bodes very well for the future.”
Following this 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 plans in the U.S. Starting this month, individual plan subscribers will see an increase of $1 to $12, while Duo plans will go up by $2 to $17, and Family plans will rise by $3 to $20. The company had previously adjusted membership costs for the first time in 13 years last July, with a general increase of around $1.
Remarkably, despite these price hikes, Spotify managed to gain seven million net subscribers in the quarter, exceeding its previous guidance by one million.
Spotify continues to lead the global audio streaming market, showing strong retention among its subscribers, as noted by a Bloomberg analysis. However, the company has faced financial challenges in the past, with its stock value dropping by more than two-thirds in 2022 amid ongoing operating losses. Earlier this year, Spotify announced plans to lay off 600 employees, followed by an additional cut of 1,500 jobs, roughly 17% of its workforce, less than a year later.