For the first time since its launch in 2008, Spotify has reported a full year of profitability, marking a major milestone for the world’s largest music streaming service.
The company’s fourth-quarter earnings report for 2024 revealed a net profit of €1.14 billion ($1.17 billion), a stark contrast to the €532 million ($549 million) loss recorded in 2023.
Spotify had already signaled in November that it was on track to reach this milestone. The company’s total annual revenue surged to €15.6 billion ($16.1 billion), up from €13.2 billion ($13.6 billion) in 2023.
This growth was fueled by an 11% increase in Premium subscribers, rising from 236 million to 263 million, and a 12% rise in monthly active users, reaching 675 million.
Despite two price hikes in less than a year, Spotify continued to attract and retain subscribers. The company raised its US Premium subscription price from $9.99 to $10.99 in July 2023, marking the first increase since its 2011 launch in the country. This was followed by another increase to $11.99 in June 2024.
In addition to pricing adjustments, Spotify introduced new AI-powered playlist features and expanded its audiobook offerings. However, the long-awaited lossless streaming option remains absent from the company’s updates, leaving users wondering when the feature will finally arrive.
Spotify CEO Daniel Ek expressed confidence about the company’s trajectory, stating, “I am very excited about 2025 and feel really good about where we are as both a product and as a business.” He emphasized that Spotify will focus on long-term growth, efficiency, and innovation to enhance user experience and sustain profitability.
As the streaming industry continues to evolve, Spotify’s success in achieving sustained profitability signals a strong future for the platform, positioning it as a leader in the competitive music and audio space.