Spotify reported a surge in user growth and profitability in Q4 2022, adding 35 million monthly active users to reach a record 675 million. Premium subscribers increased 11% year-over-year to 263 million, while ad-supported subscribers rose 12% to 425 million. The company achieved its first full year of profitability in 2024 thanks to cost-cutting measures and strong revenue growth.
Daniel Ek, Founder and CEO, Spotify, at The Future of Audiobooks Event with Spotify 2023 on Oct. 3, 2023 in New York City.Spotify added 35 million monthly active users in the fourth quarter last year — the most ever in a single quarter — bringing the total number of people streaming on the Swedish music and audiobook platform to 675 million, the company reported on Tuesday.
Premium or paying subscribers totaled 263 million as of the end of last year, an 11% increase over the prior year, and ad supported subscribers rose 12% to 425 million.The company has been on a cost-cutting mission, including letting go of about 17% of its workforce last year, said 2024 was its first full year of profitability. It reported that quarterly revenue of 4.2 billion euros , up 16%, “was ahead of plan,” thanks to favorable foreign exchange rates and subscriber revenue. Those cost cuts helped cut Spotify’s expenses by 16% from last year to 891 million euros , while revenue from premium subscribers rose 17% to 3.7 billion euros . Revenue from ad supported listeners rose 7% to 537 million euros . Average revenue per user rose 5% year over year to 4.85 euros .Spotify’s gross margin — a key measure which strips the cost of sales out of the company’s revenue — came in above target at 32.2%, compared to 26.7% a year ago. Gross profit totaled 1.37 billion euros , and the operating income rose to 477 million euros . The first quarter they expect first quarter revenue to hold flat at 4.2 billion euros , as subscribers are expected to rise just 2 million in what is typically a slower-growth quarter for Spotify.were up 12% to 675 million, contributing to the addition of 35 million MAUs for the quarter — a new recordrose by 12% to 425 million from the year ago periodrose by 17% to 3.7 billion euros . Ad-supported revenue jumped 7% to 537 million euros of 477 million euros , up from losses a year ago, which were due to one-time charges
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