Spotify has announced another quarter of record profits, occurring a year after it implemented its first-ever price increase for Premium plans.
The Swedish audio streaming giant reported an operating income of 266 million euros ($289 million) in the second quarter, a notable improvement compared to a loss of 247 million euros ($268 million) during the same period last year. Additionally, the number of monthly active users rose by 14% year-over-year to reach 626 million.
“It’s an exciting time at Spotify. We continue to innovate, proving that we are not just a fantastic product but also a thriving business,” said CEO Daniel Ek in a statement. “Our progress has surpassed even our own expectations, setting a positive outlook for the future.”
Following the release of the positive earnings report, Spotify’s stock surged nearly 14% in pre-market trading on Tuesday.
In June, Spotify announced price increases for its Premium subscribers in the U.S. Effective this month, users on individual plans will see a $1 increase to $12, those on Duo plans will pay $2 more ($17), and Family plan subscribers will incur an additional $3 charge ($20). This was the first price hike in 13 years, averaging $1 across all plans.
Despite these increases, Spotify added seven million net subscribers in the quarter, surpassing its previous guidance by a million.
Spotify remains the leading audio streaming service globally, with a Bloomberg analysis indicating that its users are less likely to cancel their memberships compared to other streaming platforms.
However, the company’s financial journey has not always been smooth. In 2022, Spotify’s stock suffered a decline of more than two-thirds of its value due to multiple quarters of operating losses. In January 2023, the company announced layoffs of 600 employees, and less than a year later, it reduced its workforce by 1,500 jobs, which accounts for approximately 17% of its total staff.