SPOT: Spotify Stock Gets Investors Groovin’ on First Annual Profit, Shares Rally 13%

Music streamer finally did it — after much bass-like effort, fine-tuned cost cuts, jacked up prices and explosive growth, Spotify is in profit.

📀 Spotify Stock Soars

• Spotify stock SPOT rallied 13% on Tuesday after a stellar earnings report, which showed the company turned in an annual profit for the first time in its 16-year history. The fiscal year closed out with €1.14 billion in net income.
• Revenue for the fourth quarter climbed to €4.24 billion, up 16% year over year and above Wall Street estimates of €4.15 billion. Earnings per share landed short of expectations: €1.76 per share against €1.99 per share.

🎧 Royalties Rise

• Getting there wasn’t easy — Spotify said it paid out a record $10 billion in royalties to the music industry in 2024. That’s all thanks to users tuning in, particularly driven by the end-of-year special treat Spotify Wrapped — a huge user engagement driver (did you post your Wrapped anywhere online?)
• Monthly active users jumped to 675 million in the fourth quarter, surpassing consensus views of 665 million thanks to 35 million new joiners flocking in.

🎙️ Jazzy Guidance by the Boss

• “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,” chief executive Daniel Ek said. “I am very excited about 2025 and feel really good about where we are as both a product and as a business.”
• Shares of Spotify closed Tuesday’s session at a record high of $621.77 a piece. The stock is up 35% this year alone, boasting a market cap of $125 billion.