Spotify has announced another record profit quarter, marking a year since it first raised the price of its Premium subscription plans.
The Swedish audio streaming platform 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) in the same period last year. The company also saw a 14% increase in monthly active users, reaching 626 million.
“It’s an exciting time at Spotify. We keep on innovating and demonstrating that we are not only a great product but increasingly a great business,” said CEO Daniel Ek in a statement. He added that their timeline for growth has exceeded expectations, which bodes well for the future.
In Tuesday’s pre-market trading, Spotify’s stock surged nearly 14% following the release of this positive earnings report.
In June, Spotify announced a price increase for its U.S. Premium users. Beginning this month, those on individual plans will see a $1 increase to $12, Duo plans will rise by $2 to $17, and Family plans will increase by $3 to $20. This followed the company’s first price hike in 13 years, which occurred in July 2022.
Despite these price adjustments, Spotify successfully added seven million net subscribers this quarter, surpassing its guidance by one million.
Spotify remains the leading audio streaming service globally, with a Bloomberg analysis indicating that its users are the least likely to cancel their memberships compared to other audio and video streaming platforms. However, the company’s financial stability has not always been secure; Spotify’s stock lost over two-thirds of its value in 2022 due to a series of operating losses, culminating in job cuts of 600 employees in January 2023, followed by an additional 1,500 layoffs, accounting for around 17% of its workforce, less than a year later.