Spotify has announced another quarter of record profits, marking a significant year since it first raised the prices of its Premium plans.
In its second quarter report, the Swedish audio streaming company revealed an operating income of 266 million euros ($289 million), a stark contrast to a loss of 247 million euros ($268 million) from the same period last year. The platform also reported a 14% annual increase in monthly active users, reaching 626 million.
“It’s an exciting time at Spotify,” said CEO Daniel Ek in a statement. “We continue to innovate and demonstrate that we are not just a great product, but increasingly a great business. Our progress has surpassed even our own expectations, which bodes well for the future.”
Following the positive earnings report, Spotify’s stock rose nearly 14% in pre-market trading on Tuesday.
In June, the company announced it would raise prices for U.S. Premium users, effective 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 price hike was the first for the company in 13 years, with an average increase of $1 implemented last July.
Despite the price increases, Spotify managed to add seven million net subscribers in the quarter, exceeding its previous guidance by one million.
Spotify remains the leading audio streaming service globally, with a Bloomberg analysis indicating that its users are less likely than those of competing audio or video streaming platforms to cancel their memberships.
However, the company has faced challenges in the past. Spotify’s stock plummeted by more than two-thirds in 2022 due to multiple quarters of operating losses. In January 2023, it announced layoffs of 600 employees, and less than a year later, it cut an additional 1,500 jobs, amounting to approximately 17% of its workforce.