Spotify has reported a record profit for another quarter, marking a significant rebound since it raised the prices of its Premium subscription plans for the first time last year.
The Swedish audio streaming service posted an operating income of 266 million euros ($289 million) for the second quarter, a stark contrast to a loss of 247 million euros ($268 million) during the same period last year. Additionally, the number of monthly active users surged by 14% year-over-year to reach 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,” said CEO Daniel Ek in a statement. “We are doing so on a timeline that has exceeded even our own expectations. This all bodes very well for the future.”
Following this positive earnings report, Spotify’s stock saw a nearly 14% increase in pre-market trading on Tuesday.
In June, Spotify announced price hikes for its Premium users in the U.S. Starting this month, individual plan users will see a $1 increase to $12, Duo plan users will face a $2 increase to $17, and Family plan users will pay $3 more, bringing their total to $20. Last July marked the first membership price increase in 13 years, averaging an increase of $1.
Despite the price adjustments, Spotify managed to add seven million net subscribers during the quarter, surpassing its previous guidance by one million.
As the leading audio streaming platform globally, Spotify users are reported to be the least likely to cancel their memberships compared to other streaming services, according to a Bloomberg analysis.
However, the company’s financial performance has not always been robust. In 2022, Spotify’s stock plummeted by over two-thirds amid several quarters of operational losses. Earlier this year, the company announced layoffs of 600 employees, followed by another round of job cuts affecting 1,500 positions, which amounts to roughly 17% of its workforce.