Spotify earns full-year profit for the first time ever

Spotify had a great 2024 with the increase in subscription costs and subscribers, announcing it made a full-year profit for the first time since launching in 2008.

The announcement comes as Spotify released its 2024 fourth-quarter earnings, with net earnings at €1.14 billion (roughly $1.69 billion CAD) and subscribers increasing 11% year-over-year to 263 million. This compares to Spotify’s €532 million (approximately $790 million CAD) loss last year. Spotify has also reported that its active listener count rose 12% year-over-year to 675 million.

In the report, Spotify also showcased a new video podcast feature for the U.S., U.K., Australia, and Canada. This feature will allow people to watch their favourite podcasts without the interruption of ads. This feature will be available for both premium and free users. Spotify also showcased elements of its creator program, including the Spotify Partner Program. It boasts that over 70% of eligible podcasts have already enrolled.

Spotify also showed off its audiobook program and the ability to customize playlist covers. It revealed that 8 billion playlists are created on the service, and 350,000 books are available for users to enjoy. It also showed off its online backup feature, which allows users to enjoy their favourite music connection-free without clogging up storage space.

Further, Spotify claimed it paid out $10 billion to the music industry in 2024 alone, totalling $60 billion since the service debuted. The service’s famous wrapped feature also received record-high engagement, growing 10% year-over-year across 184 markets and in 53 languages.

“I am very excited about 2025 and feel really good about where we are as both a product and as a business,” said Daniel Ek, Spotify’s CEO and co-founder. “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.”

Source: The Verge