On Tuesday morning, Spotify introduced its fourth-quarter earnings, marking its first full yr of profitability since its inception 17 years in the past. The working earnings for the quarter reached a file €477 million ($509.48 million) and amounted to €1.4 billion ($1.495 billion) for the 2024 fiscal yr.
Spotify additionally reported an addition of 35 million month-to-month lively customers (MAUs), the biggest This fall web addition within the firm’s historical past, surpassing inside projections of 25 million. This improve brings the entire to 675 million, representing a 12% year-over-year leap.
Moreover, the corporate skilled development in its paid subscriber base regardless of implementing two consecutive worth hikes for Premium subscriptions. The corporate reported 263 million whole subscribers, up from 240 million within the earlier quarter.
Final quarter, Spotify teased the long run arrival of its HiFi or “tremendous premium” subscription providing, enabling the corporate to extend costs even additional. CEO Daniel Ek beforehand mentioned the plan would price about $17 or $18 monthly, or round $5 greater than the present Premium tier.
The corporate’s profitability milestone comes on the heels of Spotify signing a brand new multi-year distribution settlement with Common Music Group. The deal, which incorporates funds to artists and protects their streaming royalties, may enable Spotify to launch a brand new providing for followers that features additional perks.
