Spotify celebrates first full year of profitability
Spotify, the pride of European tech, has finally turned a profit for a full year. It’s the first time this has happened since the streamer was launched in 2008.
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Spotify, the pride of European tech, has finally turned a profit for a full year. It’s the first time this has happened since the streamer was launched in 2008.
The announcement came as part of Spotify’s Q4 earnings release. Better numbers for subscriber count and cash income meant that the company made $1.17 billion in net profits for the whole of 2024.
For 2023, Spotify reported around $549 million in losses so this is definitely good news for the firm if not exactly a surprise – it had said in November that it was on track to hit this particular milestone.
Total yearly revenue rose from $13.6 billion to about $16.1 billion, and a 11% increase in Premium subscribers (from 236 million to 263 million) certainly helped. The overall number of monthly active users grew 12% to 675 million.
“I am very excited about 2025 and feel really good about where we are as both a product and as a business,” said Daniel Ek, Spotify founder and CEO.
“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. It’s this combination that will enable us to build the best and most valuable user experience, grow sustainably, and deliver creativity to the world.”
The number of subscribers grew despite Spotify twice raising its Premium price within 11 months. In June 2023, subscribers had to pay $9.99 per month but now the monthly fee is $11.99.