Spotify has recorded yet another quarter of record profits, marking a significant milestone a year after it implemented price increases for its Premium subscription plans for the first time.
The Swedish audio streaming service reported an operating income of 266 million euros ($289 million) for the second quarter, a sharp contrast to a loss of 247 million euros ($268 million) in the same period last year. The platform also saw a 14% increase in monthly active users, bringing the total to 626 million.
“It’s an exciting time at Spotify. We continue to innovate and demonstrate that we are not only an excellent product but increasingly a strong business,” said CEO Daniel Ek in a statement. “We are achieving this on a timeline that has surpassed even our own expectations, which bodes well for the future.”
Following the release of its better-than-expected earnings report, Spotify’s stock surged nearly 14% in pre-market trading on Tuesday.
In June, the company announced an increase in prices for Premium users in the U.S. Effective this month, individual plan users will see a $1 increase to $12, Duo plan subscribers will pay $2 more at $17, and Family plan members will see an increase of $3 to $20. Last July, Spotify raised its membership prices for the first time in 13 years, with an average increase of $1.
Despite these price hikes, Spotify added seven million net subscribers in the quarter, exceeding its previous guidance by one million.
Spotify remains the world’s most popular audio streaming platform, with a Bloomberg analysis indicating that its users are the least likely to cancel their subscriptions compared to other audio or video streaming services.
However, the company’s financial performance has not always been positive. Spotify shares lost more than two-thirds of their value in 2022 amid several consecutive quarters of operating losses. In January 2023, the company announced the layoff of 600 employees, followed by another staff reduction of 1,500 jobs, or roughly 17% of its workforce, less than a year later.