Spotify posts annual profit for first time since founding

© Unsplash/Felipe Pelaquim

While Spotify's user base continues to grow, the streaming platform has struggled to make a profit until now. Previously, the company managed to turn a profit in some quarters. However, 2024 is the first year since its inception that Spotify has made an annual profit.

“I'm very excited about 2025 and feel very good about where we are, both as a product and as a company”, said Daniel Ek, Spotify founder and CEO. “We will continue to make bets that will have a long-term impact, increasing our speed while maintaining the efficiency levels we achieved last year.”

In the last quarter of 2024, operating income reached a record €477 million, bringing the company’s annual operating income to €1.4 billion, a first. Revenue in the last quarter of 2024 was €4.242 billion, up 16% year-on-year.

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Good growth in the number of users

Spotify says it exceeded its targets on key metrics last quarter. And monthly active users grew 12% to 675 million, while paid subscribers increased 11% to 263 million.

The video podcast format is also a hit. According to Spotify, 330,000 episodes are already available in video format for users. And 270 million users have already consumed video content on the streaming service.

As for artist compensation, Spotify says it paid out $10 billion to the music industry in 2024 alone. And since its inception, payments have totaled nearly $60 billion.

• Spotify reports record operating profit in Q4 2024, and for the first time, the company has been profitable for a full year
• The platform's user base, as well as its premium subscribers, are also on the rise
• And Spotify's video podcast format is a hit
• In 2024, Spotify paid out $10 billion to the music industry and the total paid out since the platform's creation has reached almost $60 billion

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