Spotify has reported another quarter of record profits, marking a year since it increased the prices of its Premium subscription plans for the first time in its history.
The Swedish audio streaming platform posted an operating income of 266 million euros ($289 million) for the second quarter, compared to a loss of 247 million euros ($268 million) during the same quarter last year. The number of monthly active users rose by 14% year-over-year, reaching 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. He noted that the company’s progress has exceeded their expectations, indicating a promising future ahead.
Following the announcement of better-than-expected earnings, Spotify’s stock surged nearly 14% in pre-market trading on Tuesday.
In June, Spotify revealed it would raise prices for its Premium users in the U.S. Starting this month, individuals on the Premium plan will see an increase of $1, bringing their cost to $12. Duo plans will increase by $2 to $17, and Family plans will go up by $3 to $20. Last July, the company implemented its first membership price increase in 13 years, raising costs by an average of $1.
Despite these price hikes, Spotify added seven million net subscribers over the quarter, outpacing its previous guidance by one million.
Spotify continues to be the leading audio streaming service globally, with users less likely than those of any other audio or video streaming service to cancel their subscriptions, according to a Bloomberg analysis.
However, the company has faced financial challenges in the past. Spotify’s stock plummeted by more than two-thirds in 2022 amid a series of operating losses. In January 2023, the company announced a reduction of 600 employees, and less than a year later, it cut an additional 1,500 positions, accounting for approximately 17% of its workforce.