Spotify has announced another record-breaking quarter, marking a year since the company raised the prices of its Premium subscription plans for the first time ever.
The Swedish audio streaming platform reported an operating income of 266 million euros ($289 million) for the second quarter, a significant improvement from a loss of 247 million euros ($268 million) in the same period last year. Monthly active users increased by 14% year-over-year, reaching 626 million.
CEO Daniel Ek expressed enthusiasm about the company’s direction, stating, “It’s an exciting time at Spotify. We keep innovating and demonstrating that we are not only a great product but increasingly also a great business. This timeline has exceeded even our own expectations, and it bodes well for the future.”
Following the positive earnings report, Spotify’s stock surged nearly 14% in pre-market trading on Tuesday.
In June, Spotify announced a price increase for Premium subscribers in the U.S. starting this month. Individual plan users will now pay $12, an increase of $1, while Duo plans will rise by $2 to $17, and Family plans will go up by $3 to $20. This pricing adjustment came after a $1 increase last July, which was the first hike in 13 years.
Despite the higher prices, Spotify successfully added seven million net new subscribers during the quarter, exceeding its previous forecast by one million.
As the leading audio streaming service globally, Spotify’s users are reportedly the least likely to cancel their memberships compared to other audio or video streaming platforms, according to a Bloomberg analysis.
However, the company has faced challenges in the past. Spotify’s stock lost over two-thirds of its value in 2022 amid several quarters of operating losses. In early 2023, the company announced the layoff of 600 employees, followed by another reduction of 1,500 jobs, which represents about 17% of its workforce less than a year later.