Spotify has a record revenue in 2024

Spotify has published its financial report for the fourth quarter of 2024, marking the company’s first profitable year in history. This was facilitated by the growth in the number of paid subscribers in recent months.

The service’s total audience increased by 12% compared to the same period last year and reached 675 million monthly active users. The number of premium subscribers increased by 11%, reaching 263 million, which exceeded analysts’ expectations.

The company’s revenue for the fourth quarter amounted to 4.2 billion euros, and net profit – 477 million euros. Taking into account previous quarters, 2024 was the first when Spotify ended it with a positive financial result. The company’s management, led by CEO Daniel Ek, focused on a strategy to increase profitability, thanks to which net profit for the year reached 1.4 billion euros.

The service plans to attract three million new users in the first quarter of 2025, and the number of premium subscribers is expected to increase by two million. The company expects to receive another 4.2 billion euros in revenue, and the expected gross margin will be 31.5% due to subscription and advertising revenue.

Earlier it was reported that Spotify paid out a record $10 billion to musicians, publishers and partners in 2024.