After 16 years of operation, Spotify has reached a significant milestone by reporting its first full year of profitability. In 2024, the streaming giant recorded a net income of €1.14 billion, a sharp turnaround from the €532 million loss in the previous year.
A key factor behind this success was a 16% increase in annual revenue, reaching €15.6 billion. This growth was driven by rising premium subscriptions, which grew 11% to 263 million, and a 12% rise in monthly active users, now totaling 675 million.
Spotify also implemented cost-cutting measures, including workforce reductions and strategic price increases, which improved its financial health. Additionally, the company’s expansion into podcasts, videos, and audiobooks contributed to higher user engagement and revenue diversification.
Looking ahead, CEO Daniel Ek has expressed optimism about further growth and efficiency in 2025. Plans include new product tiers and AI-driven personalization, alongside expanding popular features like Spotify Wrapped and video podcasts for premium users.
This milestone marks a shift for Spotify from a growth-focused strategy to sustainable profitability, reinforcing its dominance in the audio streaming industry.
