Spotify becomes profitable for the first time in 17 years

Spotify has reported its 2024 financial results, becoming profitable for the first time in the company's history. Despite the price hike, the service increased the number of premium subscribers and also recorded a record growth in its active audience, TechCrunch reports.

Spotify reports record profit

Spotify announced its financial results for the fourth quarter of 2024, marking its first full year of profitability since its founding 17 years ago. Operating income for the quarter reached a record €477 million (approximately $509 million), and for the full fiscal year 2024, the company received €1.4 billion (US$1.495 billion).

Monthly active users (MAUs) increased by 35 million in the quarter, the largest quarterly increase in the company's history. Spotify's total audience now stands at 675 million people. 12% more than a year earlier.

What to expect from Spotify going forward?~

Spotify is expected to launch a new HiFi (Super Premium) plan soon, which CEO Daniel Ek says will cost around $17-$18 per month, which is $5 more than the standard Premium subscription.

In addition, the company recently signed a multi-year deal with Universal Music Group that includes new artist payment mechanisms and could give users access to exclusive content.