Spotify has announced record profits for the second quarter, marking a significant turnaround from the losses reported a year earlier. The Swedish audio streaming company achieved an operating income of 266 million euros (approximately $289 million), compared to a loss of 247 million euros ($268 million) in the same quarter last year. The number of monthly active users also showed impressive growth, rising 14% year-over-year to reach 626 million.
CEO Daniel Ek expressed enthusiasm about the company’s progress, 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.” He noted that the company’s timeline of growth has surpassed their own expectations, indicating a positive outlook for the future.
Following the announcement of better-than-expected earnings, Spotify’s stock surged nearly 14% in pre-market trading.
In June, Spotify revealed it would be increasing prices for its Premium plans in the U.S. starting this month. Individual plan subscribers will now pay $12, up by $1, while Duo plan users will see a $2 increase to $17, and Family plan subscribers will incur an additional $3, bringing the total to $20. This price adjustment came after the company raised membership costs for the first time in 13 years in July 2022.
Despite the price hikes, Spotify successfully added seven million net subscribers in the latest quarter, exceeding its initial guidance by one million.
Spotify remains the leading audio streaming platform globally, with users showing the highest retention rates among streaming services, according to a Bloomberg analysis. However, the company has faced financial challenges in the past, experiencing a significant drop in stock value in 2022 and implementing layoffs that saw approximately 2,100 employees cut from its workforce.