Spotify had a double-digit revenue increased in Q2, driven by a record high addition of users on both its paid and ad-supported tiers.

Revenue grew by 11% year-over-year, and by 14% on a constant currency basis. This came after better-than-expected user growth, an area where Spotify said it had one of its best-ever quarters. Monthly active users grew by 27% year-over-year, with 17% growth in premium subscribers and 34% growth in ad-supported subscribers.

On a constant currency basis, revenue from premium subscribers grew by 14% year-over-year, while revenue from ad-supported users grew by 15%.

Music advertising revenue grew in the mid single-digits, with a double-digit growth in impressions sold. Podcast advertising revenue grew by more than 30% year-over-year, with impressions hitting a record high on both original and licensed podcasts. The Spotify Audience Network had double-digit growth in participating advertisers and publishers compared to the previous quarter, with more podcasts also participating. The gains in all three areas, however, was partially offset by softer pricing due to the macroeconomic environment.

Despite the above, Spotify still ended the quarter with a €247 million loss. More than half of that was due to various charges the company incurred during the quarter, includes charges related to shutting down various podcasts, severance pay and a real estate optimization plan. Spotify’s gross margin also dropped 47 basis points to 24.1%, with growth in podcast profitability and its Marketplace artist promotion services partially offset by higher music royalty and real estate costs. The company was, however, able to reduce some of its costs in legal and marketing.

Looking ahead, Spotify does expect user growth to slow slightly in the next quarter, due to price increases for its premium plans, though it expects revenue to not be impacted and for its operating loss to be significantly reduced.