Spotify Reports Record Profit in Q2, Revenue Hits €3.8B, Shares Surge 15%

Jul 23, 2024, 11:01 AM

Spotify reported strong Q2 2024 earnings, with total revenue up 20% year-over-year to €3.8 billion, matching estimates. The company saw a 14% increase in monthly active users (MAUs) to 626 million, slightly below the estimated 631.46 million. Premium subscribers grew by 12% year-over-year to 246 million, surpassing the estimated 245.2 million. The gross margin improved to 29.2%, exceeding the expected 28.1%. Spotify achieved an operating income of €266 million, compared to a loss of €247 million in the same period last year. Earnings per share (EPS) were €1.33, beating the estimate of €1.05. Following the earnings report, Spotify shares surged by as much as 15% pre-market. The company attributed its record profit and improved cash flow to price increases and cost-cutting measures.