In a groundbreaking achievement, the Swedish audio streaming giant reported a net income of €1.14 billion for 2024, marking its first annual profit since inception1. This milestone was accompanied by impressive financial results, including a total revenue of €15.7 billion, representing an 18.3% increase from the previous year2. The company's operating income for the full year reached €1.4 billion, demonstrating significant improvement in profitability3. Notably, Spotify paid out a record $10 billion to the music industry in 2024, bringing its total payouts since founding to nearly $60 billion4. This financial success has been reflected in the company's stock performance, with shares surging to a record high of over $600 following the earnings announcement5.

Spotify's user base experienced unprecedented growth in 2024, reaching a record-breaking 675 million monthly active users (MAUs) by the end of the year, a 12% increase from the previous year12. This growth was particularly impressive in the fourth quarter, marking the largest Q4 expansion in the company's history. The streaming giant also saw its Premium subscriber count rise to 263 million, an 11% year-over-year increase3.

Key highlights of Spotify's user growth in 2024 include:

• Addition of 73 million net new users throughout the year4

• A quarterly record of 35 million new users added in Q4 alone4

• 11 million net new Premium subscribers in Q4, surpassing guidance by 3 million3

• Over 500 million users engaged with podcasts, with 270 million streaming video podcasts1

• Shift in geographic distribution, with Latin America and 'Rest of World' now accounting for 56% of Spotify's user base4

This remarkable user growth, achieved despite recent subscription fee increases, underscores Spotify's continued dominance in the audio streaming market and its ability to attract and retain users across diverse global markets14.

Closing out 2024 with impressive results, Spotify's fourth quarter showcased record-breaking performance across key metrics. Revenue surged 16% year-over-year to €4.24 billion, while gross profit jumped 40% to €1.37 billion1. The company's efficiency strategy paid off, with gross margins climbing to an all-time high of 32.2%, a significant increase of 555 basis points from the previous year2. Operating income reached a quarterly record of €477 million, contributing to a net profit of €367 million – a stark contrast to the €70 million loss reported in Q4 202334.

Looking ahead to 2025, Spotify has set ambitious targets for continued growth and innovation. The company forecasts first-quarter revenue of €4.2 billion, with expectations to reach 678 million monthly active users (MAUs) and 265 million premium subscribers.12 This projection represents an addition of approximately 3 million net new MAUs in Q1 2025, demonstrating Spotify's confidence in sustaining its user growth momentum.3

Spotify's CEO, Daniel Ek, expressed optimism about the company's future, stating, "We will continue to place bets that will drive long term impact, increasing our speed while maintaining the levels of efficiency we achieved last year."4 This strategy aims to enhance user experience, foster sustainable growth, and solidify Spotify's position as a leader in the audio streaming industry. The company's focus on efficiency and innovation, coupled with its recent profitability milestone, positions Spotify to potentially deliver even stronger financial results and user engagement in the coming year.