Spotify is celebrating after a strong second quarter featured a 180-degree turn compared to the financial results in the same 2023 timeframe. It also saw a jump in paying subscribers during the three-month period.
According to the company’s financial results, it saw a $289 million profit during April, May, and June. During that same window last year, Spotify experienced a $247 million loss. The company laid off 17% of its global workforce in the last year, including big cuts in its podcasting division. Recently, it cut an additional 40 employees in its advertising sales division.
During the second quarter, 7 million new paid subscribers were added, with the company now featuring 246 million paying subscribers. That figure is a 12% rise compared to the same window last year. In total, the number of active users rose to 626 million. Despite the jump in new subscribers, the company fell short of its expected 631 million users.
“It’s an exciting time at Spotify. We keep on innovating and showing that we aren’t just a great product, but increasingly also a great business,” Spotify CEO Daniel Ek said in a statement. “We are doing so on a timeline that has exceeded even our own expectations. This all bodes very well for the future.”
With its second quarter finish, the company now projects it will add another 13 million users during the third quarter, while projecting 5 million new premium subscribers during that same timeframe.
Spotify forecasts that it will see $4.3 billion in revenue during July, August, and September, with an operating income of $439 million.
