Spotify has announced a record profit for the second quarter, achieving an operating income of 266 million euros ($289 million), a significant improvement from a loss of 247 million euros ($268 million) during the same period last year. The company reported a 14% increase in monthly active users, reaching 626 million.
CEO Daniel Ek expressed optimism about the company’s direction, 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. This all bodes very well for the future.”
Following the earnings report, Spotify’s stock surged nearly 14% in pre-market trading.
In June, Spotify announced price increases for its Premium services in the U.S. Starting this month, individual plan users will pay an extra $1, bringing the total to $12. Duo plans will rise by $2 to $17, while Family plans will see a $3 increase to $20. This change follows the platform’s first membership cost hike in 13 years, which occurred in July 2022.
Despite the price raises, Spotify added seven million net subscribers in the quarter, outpacing its forecasts by one million. A Bloomberg analysis highlighted that Spotify holds the position of the most popular audio streaming service globally, with its users being the least likely to cancel their subscriptions compared to other audio and video streaming platforms.
Spotify’s financial trajectory has not always been positive; the company’s stock plummeted over 66% in 2022 due to several quarters of operating losses. In January 2023, Spotify revealed plans to cut 600 jobs, and less than a year later, it announced another reduction of 1,500 jobs, accounting for approximately 17% of its workforce.