Spotify releases 2024 financial report: record revenues and subscriber growth

This morning Spotify released its fourth-quarter financial results, announcing the first full year of profitability in the company’s 17-year history.

Spotify has released its fourth-quarter financial results, announcing the first full year of profitability in the company’s 17-year history.

Record profits and audience growth

Operating profit for the fourth quarter reached a record €477 million ($509.48 million) and for the full fiscal year 2024 was €1.4 billion ($1.495 billion).

The company also added 35 million new active users (MAUs) – the largest quarterly increase in Spotify’s history, beating the internal forecast of 25 million. The total number of users reached 675 million, up 12% from last year.

The company also added 35 million new active users (MAUs), the largest quarterly increase in Spotify’s history, surpassing internal guidance of 25 million.

Paid subscription base growth in defiance of price hikes

Despite two consecutive price increases for Premium subscriptions, the company has recorded an increase in paid subscribers. They now total 263 million, up from 240 million in the previous quarter.

HiFi’s new subscription and partnership with Universal Music Group

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Last quarter, Spotify announced the future launch of HiFi or “super premium” subscriptions, which will further increase prices. CEO Daniel Ek previously said the subscription would cost about $17-18 per month, about $5 more expensive than the current Premium subscription.

HiFi.

The company’s profitability was also made possible by signing a new multi-year distribution agreement with Universal Music Group. The deal includes payments to artists and protection of their streaming royalties, and could allow Spotify to offer subscribers new perks and value-added services.

The deal will also allow Spotify to offer subscribers new perks and value-added services.