Spotify has posted another record profit for the second quarter, achieving an operating income of 266 million euros ($289 million), a significant turnaround from a loss of 247 million euros ($268 million) during the same period last year. The Swedish audio streaming platform also reported a 14% year-on-year increase in monthly active users, now totaling 626 million.
CEO Daniel Ek expressed optimism about the company’s trajectory, 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. This all bodes very well for the future.” Following the positive earnings report, Spotify’s stock surged nearly 14% in pre-market trading on Tuesday.
In June, Spotify announced a price increase for its Premium plans in the U.S., with individual plans rising by $1 to $12, Duo plans increasing by $2 to $17, and Family plans going up by $3 to $20. This marked the first price hike in 13 years, raising costs by an average of $1. Despite these increases, the company added seven million net subscribers in the latest quarter, surpassing its earlier expectations by one million.
Spotify continues to lead the global audio streaming market, with a Bloomberg analysis indicating that its users are the least likely to cancel their subscriptions compared to competitors. However, the company has faced challenges, losing over two-thirds of its stock value in 2022 and implementing significant layoffs, including 600 jobs in January 2023 and an additional 1,500 layoffs later on, accounting for about 17% of its workforce.