NIX Solutions: Spotify Reports First Annual Profit

Spotify Technology, the Swedish company behind the popular music streaming service, has released its financial results for the fourth quarter and the full year of 2024. The report highlights a significant increase in subscribers, surpassing analysts’ expectations, and marks the company’s first-ever annual profit.

NIX Solutions

Strong Financial Growth in 2024

Spotify’s net profit for 2024 reached €1.14 billion, a notable turnaround from the previous year’s loss of €532 million. In the fourth quarter alone, revenue rose to €4.24 billion, reflecting a 16% year-on-year increase, with a profit of €367 million—compared to a €70 million loss in the same period last year. Additionally, the company’s stock price surged by 138% over the year.

The number of monthly active users grew to 675 million, surpassing analysts’ forecasts of 664.9 million. Paid subscribers also exceeded expectations, reaching 263 million.

Outlook for 2025

Spotify anticipates continued growth in the first quarter of 2025, projecting an increase of 3 million users and 2 million new paid subscribers. Revenue is expected to reach €4.2 billion, exceeding last year’s first-quarter figures. Following the earnings report, Spotify’s stock price climbed nearly 10%, reaching approximately $549 per share, adds NIX Solutions.

We’ll keep you updated on Spotify’s financial progress as more details emerge.