On Tuesday morning, Spotify released its financial results for the fourth quarter, celebrating its first complete year of profitability in its 17-year history. The operating income for this quarter hit a record €477 million ($509.48 million), contributing to a total of €1.4 billion ($1.495 billion) for the entirety of the 2024 fiscal year.
In addition, Spotify reported an increase of 35 million monthly active users (MAUs), marking the highest Q4 growth in the company’s history and exceeding its own forecast of 25 million. This surge raises the total number of users to 675 million, reflecting a 12% increase compared to the previous year.
Moreover, the company saw a rise in its paid subscriber count, despite implementing two consecutive price increases for its Premium subscriptions. Spotify now has 263 million total subscribers, an increase from 240 million just a quarter ago.
In the previous quarter, Spotify hinted at the upcoming launch of its HiFi or “super premium” subscription plan, which would allow for further price hikes. CEO Daniel Ek mentioned that this new offering is expected to be priced around $17 to $18 per month, which is approximately $5 more than the existing Premium option.
Spotify’s significant profitability achievement follows the company signing a new multi-year distribution agreement with Universal Music Group. This deal, designed to ensure payments to artists while safeguarding their streaming royalties, may enable Spotify to introduce new offerings for fans with added benefits.
Compiled by Techarena.au.
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