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Spotify Posts First Full-Year Profit for 2024, CEO Says Streamer Will ‘Double Down’ on Music in 2025

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variety.com

Todd Spangler NY Digital Editor Spotify hit all the right notes in reporting Q4 and full-year 2024 earnings, with the audio streamer turning in its first annual net profit since it was founded in 2006.

Shares of Spotify surged more than 10% on the solid earnings report in early trading Tuesday. For 2024, Spotify posted net income of €1.138 billion (versus a net loss of €505 million a year prior) on revenue of €15.673 billion, up 18.3%.

The company gained 35 million total monthly average users in Q4 — its highest-ever fourth quarter net adds — to reach 675 million at year-end, and paid subscribers grew by 11 million (matching the record gain in Q4 2019) to hit 263 million. “Spotify is not only a great product — it’s now also a great business, which we’re really happy about,” Daniel Ek, Spotify’s founder and CEO, said in announcing the results. “We’re gonna double down on music in 2025, and I’m personally very excited about that.” For Q4, Spotify’s total revenue increased 16% to €4.2 billion, and operating income hit a record high of €477 million.

Gross margin rose by 555 basis points year over year to reach 32.2% — also a record high. “I am very excited about 2025 and feel really good about where we are as both a product and as a business,” Ek said in his prepared remarks. “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.

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