Spotify's Milestone Year: First Full-Year Profit and User Growth Soar
Discover how Spotify achieved its first full-year profitability with impressive revenue growth and a surge in monthly active users, setting a new standard in the streaming industry.
Spotify (SPOT) experienced a significant boost in its stock during intraday trading on Tuesday, following the announcement of its first-ever full-year profit alongside quarterly revenue surpassing analyst expectations.
CEO Daniel Ek highlighted these achievements in a statement on X, emphasizing the company's breakthrough in reaching full-year profitability.
After implementing cost-cutting measures over recent years, Spotify reported a 16% year-over-year increase in fourth-quarter revenue, reaching €4.24 billion ($4.38 billion), outperforming the €4.16 billion forecast by Visible Alpha. Although the net profit of €367 million was slightly below the projected €407.7 million, it marked a remarkable turnaround from a €70 million loss the previous year.
Robust User Growth: Monthly Active Users Hit 675 Million
The platform saw a surge in user engagement, with monthly active users growing 12% to 675 million in Q4. Premium subscribers also increased to 263 million, exceeding Spotify’s own forecasts of 665 million MAUs and 260 million premium users, as well as analyst expectations.
Looking forward, Spotify projects first-quarter 2025 revenue of €4.2 billion, with 678 million monthly active users and 265 million premium subscribers, signaling continued expansion.
Following the earnings report, Spotify’s shares climbed 11% on Thursday and have more than doubled over the past year, reflecting strong investor confidence.
Update as of February 4, 2025: Share prices have been refreshed to reflect the latest market data.
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