The company reported a net profit of €1.1 billion (US$1.14 billion) for 2024, compared to a net loss of €532 million in the previous year.

“I am very excited about 2025 and feel really good about where we are as both a product and as a business,” Spotify CEO Daniel Ek said in a comment.

The company also had its first ever annual operating profit, which reached €1.4 billion.

Its operating profit climbed to a record €477 million in Q4.

It was short of Spotify’s guidance of €481 million for the quarter, but it drastically improved from a loss over the same period in 2023.

The number of active users grew 12% year-on-year in Q4 to reach 675 million, beating its guidance by 10 million.

The number of paying subscribers grew 11%, reaching 263 million.

Its Q4 revenue grew 16% to €4.2 billion.

The music streaming service also said it paid out a record US$10 billion in royalties to the music industry in 2024.

“Looking into 2025, we view the business as well positioned to deliver another year of continued growth and improving margins as we reinvest to support our long-term potential,” Spotify said in its earnings report.

For the first quarter (Q1) of 2025, Spotify expects to reach 678 million monthly active users and 265 million paying subscribers.