Spotify Shares Soar 11% as Streaming Giant Hits First Full-Year Profit
In a milestone achievement for Spotify (SPOT), shares surged 11% on February 4, 2025, after the streaming giant reported its first full-year profitability and exceeded revenue estimates for the fourth quarter.
CEO Daniel Ek proudly shared the news on X, highlighting Spotify’s major accomplishment: “We hit some huge milestones, including our first full year of profitability.” This significant leap follows years of cost-cutting measures.
Spotify’s fourth-quarter revenue jumped 16% year-over-year, reaching €4.24 billion ($4.38 billion), surpassing analyst expectations of €4.16 billion. The company also posted a net profit of €367 million, a stark contrast to the €70 million loss from the previous year. However, this fell short of the €407.7 million expected by analysts.
Despite the slight profit miss, the streaming service saw soaring subscriber growth. Monthly Active Users (MAUs) reached 675 million, a 12% increase, while premium subscriptions rose to 263 million, surpassing forecasts. ✨
Looking ahead, Spotify forecasts revenue of €4.2 billion, with 678 million MAUs and 265 million premium subscribers for Q1 2025.
The company’s stock has more than doubled in the past year, marking a promising future for Spotify in the competitive streaming market.
In a milestone achievement for Spotify (SPOT), shares surged 11% on February 4, 2025, after the streaming giant reported its first full-year profitability and exceeded revenue estimates for the fourth quarter.
CEO Daniel Ek proudly shared the news on X, highlighting Spotify’s major accomplishment: “We hit some huge milestones, including our first full year of profitability.” This significant leap follows years of cost-cutting measures.
Spotify’s fourth-quarter revenue jumped 16% year-over-year, reaching €4.24 billion ($4.38 billion), surpassing analyst expectations of €4.16 billion. The company also posted a net profit of €367 million, a stark contrast to the €70 million loss from the previous year. However, this fell short of the €407.7 million expected by analysts.
Despite the slight profit miss, the streaming service saw soaring subscriber growth. Monthly Active Users (MAUs) reached 675 million, a 12% increase, while premium subscriptions rose to 263 million, surpassing forecasts. ✨
Looking ahead, Spotify forecasts revenue of €4.2 billion, with 678 million MAUs and 265 million premium subscribers for Q1 2025.
The company’s stock has more than doubled in the past year, marking a promising future for Spotify in the competitive streaming market.