Spotify Reports First Annual Profit, Shares Surge 10%

Spotify announced its first full year of profitability, achieving a net income of 1.14 billion euros for 2024, a significant turnaround from a loss of 532 million euros the previous year. The company's gross profit grew by 40% year-over-year, with a fourth-quarter revenue of 4.24 billion euros, marking a 16% increase compared to the same period in 2023. Spotify paid a record $10 billion in royalties to the music industry, bolstered by a new multi-year publishing agreement with Universal Music Group. This deal is expected to introduce additional subscription tiers and bundles, enhancing Spotify's content offerings. Monthly active users (MAUs) reached 675 million, representing a 12% annual increase, while paid subscribers rose to 263 million. Following the announcement, Spotify's stock surged by 10%, reflecting investor confidence in the company's growth trajectory.