Today, Spotify released its Q4 2024 earnings, closing Q4 stronger than ever by outperforming across key metrics and celebrating the first full year of profitability.
By the end of December 2024, Spotify’s monthly active users (MAU) reached a record high of 675 million, a 12% year-over-year surge. This represents the highest Q4 net MAU additions ever. Spotify Premium subscriptions also grew 11% YoY to 263 million, highlighting continued consumer appetite for ad-free listening and personalized content.
Financially, the company saw strong growth, with revenue up 16% year-over-year to €4.2 billion, driven by increases in both subscriptions and advertising. A record-high gross margin of 32.2% was achieved, and operating income reached a new quarterly high of €477 million, demonstrating improved cost efficiencies and profitability. This marks the company’s first full year of operating income profitability, along with record gross margin, operating margin, and free cash flow.
Daniel Ek, Spotify Founder & CEO, said, “I am very excited about 2025 and feel really good about where we are as both a product and as a business. We will continue to place bets that will drive long term impact, increasing our speed while maintaining the levels of efficiency we achieved last year. It’s this combination that will enable us to build the best and most valuable user experience, grow sustainably and deliver creativity to the world.”
Spotify’s ability to drive user engagement, expand its content offerings, and improve its monetization strategies continues to set it apart. Review the full earnings release here.
