Spotify reaches 640 million users: First time it will close the full year in profit

2024, one of the world’s largest music streaming platforms, announced its third quarter financial results for the year. The company announced that it increased the number of premium subscribers by 12 percent year-on-year, reaching 252 million users. In addition, the total number of monthly active users increased by 11 percent to 640 million, demonstrating Spotify’s strong growth.

Spotify made a full-year profit for the first time

Spotify’s total revenue increased by 19 percent compared to the same period of the previous year, reaching 4 billion Euros . The company recorded a significant improvement in operating income , reaching 454 million Euros. This means Spotify has reached its highest operating income. The company also said it expects to reach full-year profitability in 2024, which would be the first time the company has achieved full-year profitability since it started operations 18 years ago.

Much of Spotify’s revenue growth is based on 21 percent growth driven by an increase in the number of premium subscribers and subscription price increases. The company raised prices for premium accounts in June. Revenue from ad-supported accounts grew by 6 percent.

Despite the positive developments in operating income, Spotify reported that its financial results were impacted by €54 million in social security liabilities (taxes associated with employee salaries and benefits). These expenses amounted to EUR 39 million above the company’s forecast.