Spotify has announced a record profit for the second quarter, marking a significant turnaround from the previous year when the company reported a loss. The Swedish audio streaming service recorded an operating income of 266 million euros ($289 million), compared to a loss of 247 million euros ($268 million) during the same period last year. Additionally, the number of monthly active users surged by 14% year-over-year to reach 626 million.
CEO Daniel Ek expressed optimism about the company’s future, highlighting Spotify’s continuous innovation and business growth. Following the release of the earnings report, Spotify’s stock saw an almost 14% increase in pre-market trading.
In June, Spotify announced a price increase for its Premium plans in the U.S. Effective this month, subscribers on individual plans will pay $12, up by $1, while Duo plans will rise to $17, an increase of $2, and Family plans will now cost $20, up by $3. This marked the first price hike in 13 years, with an average increase of $1 implemented last July.
Despite these rising costs, Spotify managed to add seven million net subscribers during the quarter, surpassing its own expectations by one million. A Bloomberg analysis revealed that Spotify remains the most popular audio streaming service globally, with its users being the least likely to cancel their subscriptions compared to other platforms.
However, the company’s financial journey has not always been smooth. In 2022, Spotify’s stock value plummeted by more than two-thirds as it encountered multiple quarters of operational losses. In January 2023, the company announced plans to reduce its workforce by 600 employees, and less than a year later, it laid off an additional 1,500 employees, which accounts for about 17% of its total workforce.