Spotify’s Co-founder and CEO Daniel Ek attends a live recording panel at Acquired, a technology podcast, at the Chase Center in San Francisco, California, U.S., Sept. 10, 2024.
Spotify shares climbed 10% on Tuesday after the music streaming company recorded its first full year of profitability, closing the fiscal year with 1.14 billion euros in net income.
Here are the numbers from its fourth-quarter earnings report, compared with analyst expectations:
Revenue: 4.24 billion euros vs. 4.19 billion euros expected by analysts polled by LSEG
4.24 billion euros vs. 4.19 billion euros expected by analysts polled by LSEG Earnings per share: 1.76 euros vs.1.99 euros expected by analysts polled by LSEG
1.76 euros vs.1.99 euros expected by analysts polled by LSEG MAUs (monthly active users): 675 million vs. 664.3 million expected by analysts polled by StreetAccount
The Luxembourg-based company reported a 40% growth year over year for gross profit, rising 10% from the previous quarter. Operating income came in at 477 million euros, slightly below guidance.
The company said it paid a record $10 billion in royalties to the music industry in 2024, growth that’s likely to continue with the streamer’s new multiyear publishing agreement with Universal Music Group announced in January.
The deal will include new paid subscription tiers, bundles for music and nonmusic content and a direct license between the two companies for Spotify in the U.S. and other countries.