On Tuesday morning, Spotify announced its fourth-quarter earnings, marking its first full year of profitability since its inception 17 years ago. The operating income for the quarter reached a record €477 million ($509.48 million) and amounted to €1.4 billion ($1.495 billion) for the 2024 fiscal year.
Spotify also reported an addition of 35 million monthly active users (MAUs), the largest Q4 net addition in the company’s history, surpassing internal projections of 25 million. This increase brings the total to 675 million, representing a 12% year-over-year jump.
Additionally, the company experienced growth in its paid subscriber base despite implementing two consecutive price hikes for Premium subscriptions. The company reported 263 million total subscribers, up from 240 million in the previous quarter.
Last quarter, Spotify teased the future arrival of its HiFi or “super premium” subscription offering, enabling the company to increase prices even further. CEO Daniel Ek previously said the plan would cost about $17 or $18 per month, or around $5 more than the current Premium tier.
The company’s profitability milestone comes on the heels of Spotify signing a new multi-year distribution agreement with Universal Music Group. The deal, which includes payments to artists and protects their streaming royalties, could allow Spotify to launch a new offering for fans that includes extra perks.
