Spotify has announced another successful quarter with record profits, marking a year since it increased the price of its Premium subscription plans for the first time in history.
The Swedish audio streaming platform reported an operating income of 266 million euros ($289 million) for the second quarter, a significant rebound from a loss of 247 million euros ($268 million) documented during the same period last year. Monthly active users surged 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. “We are doing so on a timeline that has exceeded even our own expectations. This all bodes very well for the future.”
Following the announcement of its strong earnings report, Spotify’s stock rose nearly 14% in pre-market trading on Tuesday.
In June, Spotify revealed a price increase for its Premium subscription holders in the U.S. Starting this month, individual plan users will see a $1 increase to $12, Duo plan subscribers will pay $2 more for a total of $17, and Family plan users will experience a $3 increase, bringing their total to $20. This price adjustment follows the first membership cost hike in 13 years, which took place last July, averaging an increase of $1.
Despite the recent price hikes, Spotify gained seven million net subscribers during the quarter—one million more than its prior forecast.
As the leading audio streaming service globally, Spotify users are reportedly the least likely to cancel their subscriptions among major audio or video streaming platforms, according to a Bloomberg analysis.
However, the company’s financial status has not always been robust. In 2022, Spotify’s stock value plummeted by over two-thirds as it dealt with multiple quarters of operating losses. In January 2023, Spotify announced plans to lay off 600 employees, and less than a year later, it trimmed approximately 1,500 jobs, equating to roughly 17% of its workforce.