2024 was the first fully profitable year for Spotify

Spotify has announced its financial results for Q4 2024. Due to the growth in the number of paid subscribers in recent months, the company has become profitable for the first time in the whole year.

The number of active monthly users of the music streaming service grew to 675 million, up 12% year-on-year. The number of paid subscribers increased by 11% compared to the results for 2023 to 263 million, ahead of expectations.

The company's revenues for the fourth quarter amounted to €4.2 billion, of which €477 million was net profit. Taking into account the results for the previous quarters, 2024 was the first year in the history of the service to be fully profitable.

Thanks to Spotify's CEO, Daniel Ek, who focused on achieving profitability, the company generated about €1.4 billion in net profit in 2024.

In the first quarter of 2025, the streaming service plans to gain another 3 million active monthly users and about 2 million paid subscribers. The company also plans to generate €4.2 billion in revenue for the second consecutive quarter, with a projected gross margin of 31.5% due to subscriptions and advertising.

Earlier, it became known that Spotify paid a record $10 billion to artists, publishers, and other partners on the platform in 2024.