Spotify has announced another quarter of record profits, marking a year since it first increased the price of its Premium plans. The Swedish audio streaming giant reported an operating income of 266 million euros ($289 million) for the second quarter, a significant turnaround from a loss of 247 million euros ($268 million) during the same period last year. The number of monthly active users also saw a 14% year-over-year growth, reaching 626 million.
CEO Daniel Ek expressed optimism about the company’s future, 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 the positive earnings report, Spotify’s stock surged nearly 14% in pre-market trading on Tuesday.
In June, Spotify announced a price increase for its Premium users in the United States. Starting this month, individual plan users will pay $12 per month, up by $1, while Duo plan subscribers will see their fees rise to $17, an increase of $2. Family plans will now cost $20, reflecting a $3 hike. This was the first price adjustment in 13 years, introduced last July, which also averaged an increase of $1.
Despite the price hikes, Spotify added seven million net subscribers during the quarter, exceeding its previous guidance by one million.
Spotify remains the leading audio streaming service globally, with research showing its users are the least likely to cancel their subscriptions compared to other streaming platforms. However, the company’s financial performance has experienced turbulence in the past; its stock declined by more than two-thirds in 2022 due to multiple quarters of operating losses. In early 2023, the company announced layoffs of 600 employees and followed that with a further reduction of 1,500 jobs, which accounted for about 17% of its workforce.