{"id":1177,"date":"2024-07-26T18:54:01","date_gmt":"2024-07-26T18:54:01","guid":{"rendered":"http:\/\/orangefiles.me\/?p=1177"},"modified":"2024-10-19T10:39:28","modified_gmt":"2024-10-19T10:39:28","slug":"spotify-reports-record-profits-as-stock-soars","status":"publish","type":"post","link":"http:\/\/orangefiles.me\/index.php\/2024\/07\/26\/spotify-reports-record-profits-as-stock-soars\/","title":{"rendered":"Spotify Reports Record Profits as Stock Soars"},"content":{"rendered":"
Spotify<\/a>‘s efforts to grow their premium subscriptions are paying off, quite literally.\u00a0<\/p>\n The streaming giant recently revealed record profits on its Q2 earnings call, and now, their stock is surging. Shares ballooned at a 14% clip on the New York Stock Exchange on Tuesday, per Music Business Worldwide<\/a><\/em>.<\/p>\n Spotify reportedly revealed a 20% revenue increase to a staggering $4.14 billion from April to June, with gross margins of 29.2%. But how is Spotify driving so much revenue?\u00a0<\/p>\n Premium subscriptions are bringing in the big bucks.\u00a0The company saw a 12% increase in its subscriber base despite a pair of price hikes<\/a>, bringing the number of total users to an astounding 246 million. These premium subscriptions\u00a0swelled the company’s revenue by 21%.\u00a0Spotify’s ad business has also proven successful, driving a 13% increase in sales to over $456 million.<\/p>\n Another major contributing factor to the company’s boosted Q2 revenue is their late-2023 layoffs and budget cuts.\u00a0Back in December, Spotify\u00a0reportedly\u00a0reduced their workforce by 17% by letting go of roughly 1,500 employees. Their operating costs were cut by 16% year-on-year, which not only affected their workforce, but also their massive marketing budget.<\/p>\n