Spotify Q4 hits records, will ‘double down on music’ in 2025
The stock market reacted positively Tuesday, after Spotify Q4 2024 earnings were announced, ending its first year of profitability strong across most key metrics. During the earnings call, CEO Daniel Ek promised to “double down on music” after years of expansion in other audio and video categories and to accelerate new product releases.
Many of the new features will be designed to serve subcategories of users, said EK, particularly superfans. Hinting that a related launch may be coming soon, EK said he had been playing with the superfan offering and “can’t wait to share it with you.”
UPDATE: The positive news sent Spotify stock up when the market opened on Tuesday and by mid-day NYSE: SPOT was trading at $609.00 up $59.92 or 10.91%.
Highlights: Spotify Q4 2024 earnings
- Monthly Active Users grew 12% Y/Y to 675 million
- Subscribers increased 11% Y/Y to 263 million.
- Total Revenue was up 16% Y/Y to €4.2 billion.
- Gross Margin climbed by 555 bps YoY to 32.2%.
- Operating Income rose to €477 million.
“I am very excited about 2025 and feel really good about where we are as both a product and as a business,” said Daniel Ek. “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.”
Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, a Berklee College Of Music professor and the founder of the Skyline Artists Agency
