Spotify has reported another record-setting quarter, marking a significant turnaround since it raised the price of its Premium plans for the first time last year.
In the second quarter, the Swedish audio streaming giant recorded an operating income of 266 million euros ($289 million), a notable improvement from a loss of 247 million euros ($268 million) in the same period last year. Monthly active users saw a year-on-year increase of 14%, reaching 626 million.
CEO Daniel Ek shared his excitement 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. We are doing so on a timeline that has exceeded even our own expectations. This all bodes very well for the future.”
Following the release of the earnings report, Spotify’s stock surged nearly 14% in pre-market trading.
In June, the company announced price hikes for its Premium users in the U.S. Starting this month, individual plan users will see a $1 increase to $12, Duo plan users will pay $2 more at $17, and Family plan users will face a $3 increase to $20. This was the first price increase in 13 years, reflecting an average jump of $1 across various plans.
Despite the price adjustments, Spotify added seven million net subscribers during the quarter, exceeding its initial projections by one million.
As the leading audio streaming service globally, Spotify has retained a loyal user base that is less likely to cancel subscriptions compared to other streaming platforms, according to a Bloomberg analysis.
However, the company’s financial journey has had its challenges, as Spotify’s stock lost over two-thirds of its value in 2022 due to several quarters of operating losses. In early 2023, the company announced plans to cut its workforce by 600 employees, and less than a year later, it reduced its staff by 1,500 positions, accounting for about 17% of its total workforce.