Spotify has finally turned a corner, reporting its first full year of profitability in 2024, sending its stock price surging 10%. The music streaming giant closed the fiscal year with €1.14 billion in net income, a historic achievement that signals strong growth in both revenue and user engagement.
The fourth-quarter earnings exceeded expectations in revenue (€4.24 billion) and monthly active users (MAUs), reaching 675 million. This marks a 35 million net growth in MAUs, setting a record for Q4. Additionally, Spotify Wrapped played a crucial role in driving engagement.
Spotify’s strategic partnership with Universal Music Group, including new paid tiers and bundled music and non-music content, is set to fuel further growth. The company also paid a record $10 billion in royalties to the music industry.
With first-quarter projections estimating 678 million MAUs and €4.2 billion revenue, Spotify’s momentum is expected to continue into 2025.
