In 2024, Spotify raised enough money and new subscribers to celebrate its first full year of profitability since the service’s launch in 2008. The announcement was made as part of Spotify’s fourth-quarter earnings release, with net income for the full year 2024 totaling 1.14 billion euros (about 1.17 billion U.S. dollars), compared to a loss of 532 million euros (about 549 million U.S. dollars) reported last year.
In November, Spotify said it was on track to achieve its profitability. Total annual revenue rose to 15.6 billion euros (about $16.1 billion) from 13.2 billion euros (about $13.6 billion) planned for 2023. This was partly driven by an 11 percent increase in premium subscribers from 236 million to 263 million, while total monthly active users grew by 12 percent to 675 million.
The growth in the number of subscribers occurred despite the fact that the company raised the price of its premium subscription twice in 11 months. The jump from $9.99 to $10.99 per month in July 2023 marked Spotify’s first price increase in the U.S. since its launch in 2011, followed by a hike to $11.99 per month in June 2024.
New artificial intelligence playlist and audiobook features came in the same period, but today’s report makes no mention of when the long-promised lossless streaming option on Spotify might arrive.
“I’m looking forward to 2025 and am very pleased with where we are as a product and as a business,” said Spotify CEO Daniel Ek. “We will continue to focus on making a long-term impact by increasing our speed while maintaining the level of efficiency we achieved last year. It is this combination that will allow us to create the best and most valuable user experience, grow steadily, and bring creativity to the world.”
