Annual revenue grew 16%, reaching 4.2 billion euros, while the number of paying subscribers rose 11%, totaling 263 million
The streaming platform has reached a significant milestone in registering its first annual operating profit since its inception. This positive result was driven by the increase in the number of subscribers paid and the implementation of cost containment measures. Following the release of optimistic forecasts for the first quarter, the company’s shares were up 13.24% on the New York Stock Exchange. In the last quarter, the company’s operating revenue reached 477 million euros, contributing to a total annual profit of 1.4 billion euros.
Annual revenue grew 16%, reaching 4.2 billion euros, while the number of paying subscribers rose 11%, totaling 263 million. In addition, the platform recorded 675 million monthly active users, exceeding market expectations. Spotify’s financial success is attributed to a series of initiatives focused on reducing expenses and improving profitability.
These actions include layoffs and adjustments in service prices. The diversification of the offer, with the inclusion of podcasts, videos and audioolivros, has also been an effective strategy for attracting new users.
For the first quarter of 2025, the company projects an operating profit of 548 million euros, with an average of 678 million monthly users. CEO DANIEL EK has shown confidence in the company’s future, highlighting the increase in users’ engagement, which was driven by resources such as “Wrapped”, which allows users to revisit their favorite songs of the year.
In addition, Spotify is looking for new growth opportunities, including the development of “deeply personal AI products”. The company believes it is in a favorable position to continue its expansion trajectory and improve its profit margins throughout 2025.
*Report produced with the aid of AI
Published by fenando Dias
