Spotify has reported a record profit for the second quarter, marking a significant turnaround from a loss a year ago. The Swedish audio streaming service posted an operating income of 266 million euros ($289 million), compared to a loss of 247 million euros ($268 million) in the same period last year. The number of monthly active users also increased by 14% year-over-year to reach 626 million.
In a statement, CEO Daniel Ek expressed enthusiasm about the company’s growth, 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 this progress is ahead of the company’s expectations, which is promising for future growth.
Following the positive earnings report, Spotify’s stock saw a nearly 14% rise in pre-market trading.
In June, Spotify announced a price hike for its Premium users in the U.S. Starting this month, individual plan subscribers will see a $1 increase to $12, Duo plans will increase by $2 to $17, and Family plans will rise by $3 to $20. This marks the first increase in 13 years, with last year’s adjustment also averaging an additional $1.
Despite the price hikes, Spotify added seven million net subscribers during the quarter, surpassing its previous guidance by one million.
Spotify remains the leading audio streaming platform globally, with users demonstrating a lower tendency to cancel their subscriptions compared to other streaming services, according to a Bloomberg analysis.
However, the company faced challenges in recent years, including a significant decline in stock value in 2022, where it lost over two-thirds of its worth due to several quarters of losses. In response, Spotify announced job cuts affecting 600 employees in January 2023, followed by an additional 1,500 layoffs, or roughly 17% of its workforce, less than a year later.