Spotify has announced another quarter of record profits following its first-ever price increase for Premium plans last year. The Swedish audio streaming platform reported an operating income of 266 million euros (approximately $289 million) for the second quarter, compared to a loss of 247 million euros ($268 million) in the same period a year prior. Monthly active users increased by 14% year-on-year, reaching 626 million.
“It’s an exciting time at Spotify. We continue to innovate, demonstrating that we are not only a great product but increasingly a solid business,” said CEO Daniel Ek in a statement. “Our progress has outpaced even our own expectations, which bodes well for the future.”
Following the earnings announcement, Spotify shares surged nearly 14% in pre-market trading.
In June, the company revealed it would raise prices for Premium users in the U.S. Starting this month, individual plans will cost $12 (up by $1), Duo plans will be $17 (up by $2), and Family plans will increase to $20 (up by $3). This price adjustment follows an average $1 membership cost increase the prior July, marking the first hike in 13 years.
Despite these increases, Spotify added seven million net subscribers during the quarter, exceeding its previous guidance by one million.
As the leading audio streaming service globally, Spotify users exhibit the lowest cancellation rates among audio and video streaming platforms, according to a Bloomberg analysis.
However, Spotify’s financial performance has not always been robust. In 2022, the company’s stock value plummeted by over two-thirds, coinciding with several quarters of operating losses. In early 2023, Spotify announced the layoff of 600 employees and later cut 1,500 jobs, accounting for roughly 17% of its workforce.