Spotify Reports First Full Year of Profitability, Shares Jump 13%
Spotify ended its fiscal year by reporting net income of 1.14 billion euros, marking the streamer’s first-ever profitable year. This landmark announcement drove its stock price up 13% and added momentum to its quest to dominate the global music streaming market. The company attributes much of its user engagement to popular features like its annual “Wrapped” campaign and strategic label partnerships.
The fourth-quarter results also outperformed analyst predictions, with monthly active users reaching 675 million—well above consensus estimates. Spotify disclosed that it paid a record $10 billion to the music industry in 2024, underscoring its rising revenue and continued expansion. While operating income slightly missed guidance, gross profit shot up 40% year over year, reflecting healthy margins.
Looking to 2025, Spotify plans to add 3 million more MAUs in the first quarter, expecting two-thirds to sign up for its premium service. These numbers are bolstered by a multiyear agreement with Universal Music Group, promising exclusive bundles and potential new paid subscription tiers. With a robust financial performance and fresh licensing deals, Spotify appears set to further entrench itself as a leading force in the audio streaming space.
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