Spotify reported a strong performance in Q2 with revenue of €3.81 billion, up 20%, and a net profit of €274 million, a significant improvement from a net loss in the same period last year.

Despite recent price increases, Spotify experienced a 12% growth in premium subscribers compared to the previous year.

In Q2, Spotify gained 7 million paid subscribers, slightly exceeding expectations, but total monthly users fell below the target.

Spotify anticipates adding nearly 13 million monthly active users, including 5 million premium accounts, in Q3, aiming for a total of 639 million MAUs.

The increase in profit is credited to Spotify gaining seven million music platform subscribers, surpassing the expected growth by one million.

Analysts believe Spotify's margin profile could improve in the long term due to price hikes, podcasting exposure, and cost-cutting measures.

Spotify expanded its content offerings in Q2, introducing video podcasts, audiobooks, and new plans in various countries.

Spotify saw a 12% growth in subscribers, totaling 246 million paying users, and a 14% increase in monthly active users, reaching 626 million.

Spotify raised Premium subscription prices in the U.S. in June, with individual plans increasing by $1, Duo plans by $2, and Family plans by $3.

Spotify increased profitability by implementing measures such as staff layoffs, introducing audiobooks, raising prices, and focusing on podcasting and advertising.

The company's ad-supported revenue in Q2 grew by 13%, driven by music and podcast advertising across all regions.

Following positive Q2 earnings, Spotify's stock surged nearly 14% in pre-market trading, reflecting investor confidence in the company's growth.

CEO Daniel Ek expressed optimism about Spotify's innovation and business growth, aiming for sustained profitability beyond expectations.

Operating profit for Spotify rose significantly to 266 million euros, up by 58.3%, with operational expenses decreasing by 16% to 846 million euros, partly due to lower personnel costs.

Spotify achieved a net income of €274 million, or €1.33 per share, for the three months ended June 30, showing substantial growth compared to the same period last year.

Spotify operates in 184 markets and offers a vast library of content, including over 100 million tracks, 6 million podcasts, and 350,000 audiobooks.

Monthly active users increased by 14% to 626 million, with subscribers reaching 246 million, contributing to a 20% revenue growth to €3.8 billion in Q2.