Spotify Surges to 675 Million Users, First Annual Profit

Spotify earned an operating income of €477 million on revenues of €4.2 billion in the quarter ending December 31, 2024. Revenues were up 16 percent year-over-year (YOY), and the quarter marked the culmination of Spotify’s first-ever year of profitability.

“We ended 2024 with strong Q4 performance, as nearly all of our [key performance indicators] exceeded guidance and profitability reached record levels,” Spotify notes in a letter to shareholders. “Revenue was ahead of plan due to favorable currency movements and underlying strength in the business … Looking into 2025, we view the business as well positioned to deliver another year of continued growth and improving margins as we reinvest to support our long-term potential.”

Spotify added 35 million new users in the quarter, 11 million of which were paying premium subscribers. Spotify’s user base grew to 675 million overall, up 12 percent YOY, while paying premium subscribers grew 11 percent YOY to 263 million users. Spotify’s ad-supported user base grew 12 percent YOY to 425 million.

For the year, Spotify earned an operating income of €1.4 billion on revenues of €15.7 billion. The firm had posted a net loss of €446 million the previous year on revenue of €13.2, so revenues were up about 18.3 percent YOY.

Spotify paid out a record $10 billion to artists in 2024, refuting reports that the smaller Apple Music somehow was more lucrative. It also reported that its Wrapped 2024 event was its biggest yet, with double-digit YOY growth and record user engagement across 184 markets.