Spotify raises prices a day ahead of its Q2 financial results
- Spotify raised prices for its premium ad-free subscription on Monday.
- The audio streaming giant is set to report its Q2 earnings on Tuesday.
- Spotify stock has more than doubled since the start of the year 2023.
Spotify Technology SA (NYSE: SPOT) says it’s premium ad-free subscription will now cost a little bit more. Shares ended about 8.0% down on Monday.
How much did Spotify lift prices?
Copy link to sectionThe music and podcast streaming company raised the price of its single-user plan in the United States by $1.0 to $10.99 per month.
The market landscape has continued to evolve since we launched. So that we can keep innovating, we’re changing our premium prices across a number of markets around the word.
The news arrives only a day before Spotify is scheduled to report its Q2 results. Consensus is for the Swedish company to lose 70 cents a share this quarter on $3.6 billion in revenue.
A year earlier, it had 86 cents of loss on a per-share basis but a lower $2.9 billion revenue. Wall Street currently has a consensus “overweight” rating on Spotify stock.
Analysts’ view on Q2 subscriber growth
Copy link to sectionSpotify also raised the price of its family plan by a dollar today but the premium duo plan will now cost $2.0 more.
Users will get a grace period of one month before the updated prices apply on them. New prices will soon be notified to subscribers via email as well, as per the press release.
These updates will help us continue to deliver value to fans and artists on our platform.
Street expects the New York listed firm to report 217 million subscribers by the end of its Q2. In comparison, it had 188 million in total a year ago. Last month, Wolfe Research analyst Zach Morrissey said Spotify stock had upside to $190 (source).
