CHART: Spotify post record profit in Q2' 24 amid efficiency measures and subscription price hikes
These impressive financial results have sent Spotify's stock soaring 12% higher.
- Revenue matched estimates at 3.81 billion euros ($4.15 billion)
- Gross margin hit a record 29.2%, with a Q3 forecast of 30.2%.
- Total MAUs grew 14% year-over-year to 626 million, with Q3 estimates at 639 million.
Spotify has achieved a major milestone, reporting its most profitable quarter ever. This marks a significant turnaround for the music streaming giant, which has been under pressure to improve its financial performance.
The company's strategic focus on cost-cutting measures, including layoffs and reduced marketing spending, has paid off handsomely. Coupled with increased subscription prices and a growing user base, Spotify has managed to boost its revenue and profitability.
The music streaming giant's total revenue for the quarter surged 20% year-over-year to a record 3.8 billion euros ($4.15 billion), marking a significant uptick from the previous year. This impressive growth was driven by both premium and ad-supported revenue streams.
Equally impressive, Spotify swung from a loss to a net income of 274 million euros ($298 million), or earnings of 1.33 euros ($1.44), a substantial turnaround from the 302 million euro ($327.77 million), or a loss of 1.55 euros ($1.68) per share reported in the same period last year.
