Spotify has announced record profits for another quarter, marking a significant milestone following its first-ever price increase for Premium plans last year.
The Swedish audio streaming service reported an operating income of 266 million euros ($289 million) for the second quarter, a turnaround from a loss of 247 million euros ($268 million) during the same period last year. The number of monthly active users rose by 14% year-over-year, reaching 626 million.
CEO Daniel Ek expressed enthusiasm about the company’s progress, stating, “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. This all bodes very well for the future.”
In response to the positive earnings report, Spotify’s stock surged nearly 14% in pre-market trading on Tuesday.
The company announced in June that it would be raising prices for its Premium plans in the U.S. Starting this month, individual plan subscribers will see a $1 increase, bringing the total to $12. Duo plans will rise by $2 to $17, and Family plans will increase by $3 to $20. This marks the first price hike in 13 years, which was implemented last July with an average increase of $1.
Despite these increases, Spotify successfully added seven million net subscribers in the last quarter, exceeding its own guidance by one million.
According to a Bloomberg analysis, Spotify remains the leading audio streaming platform globally, with users showing a lower likelihood of canceling their subscriptions compared to other streaming services.
However, the company’s financial journey has not always been smooth. In 2022, Spotify’s stock value plunged more than 66%, amid several quarters of operating losses. Earlier this year, the company revealed plans to cut 600 jobs and later laid off 1,500 employees, equating to approximately 17% of its workforce.