SPOT: Spotify Stock Turns Up by 12% as Traders Cheer Record Profits After Price Hikes

Swedish music streamer posted record back-to-back quarterly profit while shares are up a good 75% on the year so far.

• Spotify stock SPOT surged 12% on Tuesday following the company’s second-quarter earnings report. The Swedish music streamer posted surprisingly strong revenue and record profit after it had ramped up its premium subscription price earlier in the quarter. Even more impressive, Spotify showed it can flex price hikes amid looming competition from Apple and Alphabet’s YouTube and still come out in the black.
• For the three months to June, Spotify booked an operating profit of €266 million ($289 million), surpassing the €238 million expected by analysts. Earnings per share, based off of that figure, landed at €1.33, easily exceeding the €1.05 consensus calls. Revenue for the streaming platform grew 20% year-on-year and hit €3.8 billion. Monthly active users jumped 14% to 626 million music and podcast listeners. Paid subscribers grew 12% to 246 million.
• With two profitable quarters in a row, the company is halfway through CEO Daniel Ek’s vision of a full year of profitability. Spotify delivered a profit of €197 million on €3.64 billion in revenue for the first quarter of 2024. Looking ahead, the company is aiming for 13 million new net monthly active users in the third quarter. Profitability isn’t just for the company. This year, shares of Spotify are up a hefty 75% and have more than doubled in the past twelve months.