Spotify Reports Record Profits, Driven by Premium Subscriber Growth

The streaming giant surpasses earnings expectations despite falling short on monthly active user targets.

Spotify's premium subscribers grew 12% year-over-year, reaching 246 million.
Revenue increased by 20% to €3.81 billion, with premium users contributing 95% of gross profit.
Operating income hit a record €266 million, up from a loss of €247 million last year.
The company's stock surged 14% following the earnings report.
Despite missing its MAU target, Spotify forecasts continued growth in the third quarter.