Spotify has announced record profits for the second quarter, marking a significant turnaround from previous losses. The Swedish audio streaming giant reported an operating income of 266 million euros ($289 million), a stark contrast to a loss of 247 million euros ($268 million) during the same period last year. The platform’s monthly active users also experienced a 14% annual growth, reaching 626 million.
CEO Daniel Ek expressed optimism about the company’s trajectory, emphasizing their commitment to innovation and 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 release of its earnings report, Spotify’s stock surged nearly 14% in pre-market trading.
In June, Spotify announced a price increase for its Premium plans in the U.S. Starting this month, individual subscribers will pay $12, up by $1; Duo plan members will see their fees rise to $17, an increase of $2; and Family plans will cost $20, reflecting a $3 increase. This adjustment follows last year’s first price hike in 13 years, which averaged $1.
Remarkably, the company managed to gain seven million new subscribers during the quarter, surpassing its earlier projections by one million, despite the increased costs.
Spotify remains the leading audio streaming service globally, with data indicating that its users are the least likely to cancel their subscriptions compared to other audio and video streaming services. However, the company’s financial journey has not been without challenges; it lost significant value in 2022, leading to layoffs totaling 2,100 jobs over the past year as part of a restructuring effort.