Spotify has announced another record profit for the quarter, marking one year since the company first raised its Premium subscription prices.
The Swedish audio streaming platform reported an operating profit of 266 million euros ($289 million) for the second quarter, a significant recovery from a loss of 247 million euros ($268 million) during the same period last year. Additionally, the number of monthly active users saw a 14% increase year-on-year, reaching 626 million.
“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,” stated CEO Daniel Ek. He expressed optimism about the company’s trajectory, noting that it surpassed even its own expectations and that this positive momentum is promising for the future.
Following the release of the favorable earnings report, Spotify’s stock surged nearly 14% in pre-market trading on Tuesday.
In June, Spotify announced it would increase prices for its Premium users in the United States. Starting this month, individual plan users will pay an additional dollar ($12), while Duo plans (for two people) will see a $2 increase ($17), and Family plans will rise by $3 ($20). This move came after the company raised membership fees for the first time in 13 years by an average of $1 last July.
Despite the price hikes, Spotify added seven million net subscribers during the quarter, exceeding its previous forecast by one million.
Spotify maintains its status as the leading audio streaming service globally, with a Bloomberg analysis revealing that its users are the least likely among audio and video streaming platforms to cancel their subscriptions.
However, the company has not always enjoyed such financial success. In 2022, Spotify’s stock plummeted by more than two-thirds as it dealt with multiple quarters of operating losses. In January 2023, the company announced it would lay off 600 employees, followed by a significant reduction of 1,500 jobs, roughly 17% of its workforce, less than a year later.