Spotify has achieved its first full year of profitability, with shares climbing 13% on the news. The company reported a record $10 billion in royalties paid to the music industry in 2024, up from previous years. Spotify’s revenue for the fiscal year reached 1.14 billion euros in net income.
The Luxembourg-based company saw significant growth in gross profit, increasing by 40% year-over-year and operating income came in at 477 million euros, slightly below guidance. Spotify’s monthly active users (MAUs) rose to 675 million, with a 12% increase in the past year.
The new multiyear publishing agreement with Universal Music Group announced in January is expected to drive continued growth, including new paid subscription tiers and bundles for music and non-music content. This deal also includes a direct license between Spotify and Universal in the US and other countries.
Spotify’s fourth-quarter earnings report showed improvement from the previous quarter, with net income of 367 million euros and revenue exceeding analyst expectations at 4.24 billion euros. The company’s forecast for first-quarter growth indicates an estimated 678 million MAUs, a net add of 3 million, with two-thirds expected to be premium paid subscribers.
Spotify’s stock had gained about 39% year-to-date following the announcement.
Source: https://www.cnbc.com/2025/02/04/spotify-shares-pop-10percent-after-company-reports-first-profitable-year.html