Spotify Revenues Up 19 Percent to €3.99 Billion

Spotify reported double-digit growth across monthly active users, subscribers, profits, and revenues for the quarter ending September 30, 2024.

The music streaming giant beat expectations across the board, posting a net income of €300 million on revenues of €3.99 billion. Those figures represent year-over-year (YOY) gains of 461 percent and 18.8 percent, respectively. Spotify says it’s now on track for its first full year of profitability.

“We’ve never been in a stronger position, thanks to the outstanding execution by our team,” Spotify founder and CEO Danial Ek said. “I’m incredibly proud of the way we’ve delivered and the progress we’ve made. We’re where we set out to be—if not a little further—and on a steady path toward achieving our long-term goals. This relentless pursuit of innovation and commitment to growth sets us up to deliver the most valuable user experience in the industry, while reinforcing the core strengths that make Spotify unique. I am very excited about what lies ahead for us.”

Despite a year filled with layoffs, podcasting and audiobook missteps, and price hikes, Spotify does seem to have figured out a successful formula. Monthly active users (MAUs) were up 11 percent YOY to 640 million, with the paying subscriber base growing 12 percent YOY to 252 million and ad-supported MAUs up 11 percent to 402 million. Revenues from paying subscribers jumped 21 percent to €3.5 billion, while ad-supported revenues gained 6 percent to €472 million.

From a user experience perspective, Spotify touted new features it launched in the quarter like music videos (in beta), the expansion of its AI DJ to Spanish-speaking customers, and the expansion of AI playlist capabilities worldwide. Spotify now supports comments for podcasts, too, and its audiobook library now offers over 200,000 titles one year after launch.

Looking ahead, Spotify expects to add about 25 million more MAUs in the current quarter, about 8 million of which will be paid subscribers.