Spotify has reported another record profit quarter, a year after increasing the prices of its Premium plans for the first time in its history.
The Swedish audio streaming platform announced an operating income of 266 million euros ($289 million) for the second quarter, a significant recovery from a loss of 247 million euros ($268 million) during the same period last year. Monthly active users have risen 14% year-over-year, reaching 626 million.
“It’s an exciting time at Spotify. We continue to innovate and demonstrate that we are not just a great product, but increasingly a great business,” stated CEO Daniel Ek. “We are achieving this faster than we anticipated, which bodes well for our future.”
Following the announcement of its stronger-than-expected earnings report, Spotify’s stock surged nearly 14% in pre-market trading on Tuesday.
In June, Spotify revealed a price increase for its Premium subscribers in the U.S. Starting this month, individuals will see a $1 increase to $12, Duo plans will cost $2 more at $17, and Family plans will rise by $3 to $20. This price hike comes after the company raised membership fees by an average of $1 for the first time in 13 years last July.
Despite these price adjustments, Spotify managed to gain seven million net subscribers in the quarter, exceeding its prior guidance by one million.
Spotify remains the leading audio streaming service globally, with users being the least likely among audio or video streaming platforms to cancel their subscriptions, as per a Bloomberg analysis.
However, the company’s financial history has not always been positive. In 2022, Spotify’s stock plummeted by more than two-thirds as it experienced multiple quarters of operating losses. In January 2023, the company announced the layoff of 600 employees, and less than a year later, it reduced its workforce by another 1,500 jobs, representing about 17% of its total staff.