Spotify has announced another record-setting quarter, marking a year since it first increased the price of its Premium subscription plans. The Swedish audio streaming platform reported an operating income of 266 million euros ($289 million) for the second quarter, a significant turnaround from a loss of 247 million euros ($268 million) a year prior. Monthly active users rose by 14% year-over-year, reaching 626 million.
Spotify’s CEO, Daniel Ek, expressed optimism about the company’s growth, 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% during pre-market trading on Tuesday.
In June, the company announced a price hike for Premium users in the United States. Starting this month, the cost for individual plans will increase by $1 to $12, Duo plans will rise by $2 to $17, and Family plans will see a $3 increase, bringing them to $20. Last July, Spotify adjusted its membership prices for the first time in 13 years, with an average increase of $1.
Despite these price hikes, Spotify successfully gained seven million net subscribers during the quarter, exceeding its prior guidance by one million. A Bloomberg analysis has indicated that Spotify remains the leading audio streaming service globally, with its users showing a lower likelihood of canceling their subscriptions compared to other streaming platforms.
However, the company’s financial performance has not always been so strong. In 2022, Spotify’s stock lost more than two-thirds of its value, resulting from several quarters of operating losses. In January 2023, the company announced it would lay off 600 employees, and less than a year later, it cut 1,500 jobs, representing around 17% of its workforce.