Spotify’s Co-founder and CEO Daniel Ek attends a stay recording panel at Acquired, a expertise podcast, on the Chase Heart in San Francisco, California, U.S., Sept. 10, 2024.
Laure Andrillon | Reuters
Spotify shares climbed 10% on Tuesday after the music streaming firm recorded its first full yr of profitability, closing the fiscal yr with 1.14 billion euros in internet revenue.
Listed below are the numbers from its fourth-quarter earnings report, in contrast with analyst expectations:
- Income: 4.24 billion euros vs. 4.19 billion euros anticipated by analysts polled by LSEG
- Earnings per share: 1.76 euros vs.1.99 euros anticipated by analysts polled by LSEG
- MAUs (month-to-month energetic customers): 675 million vs. 664.3 million anticipated by analysts polled by StreetAccount
The Luxembourg-based firm reported a 40% development yr over yr for gross revenue, rising 10% from the earlier quarter. Working revenue got here in at 477 million euros, barely under steering.
The corporate stated it paid a report $10 billion in royalties to the music business in 2024, development that is prone to proceed with the streamer’s new multiyear publishing settlement with Common Music Group introduced in January.
The deal will embrace new paid subscription tiers, bundles for music and nonmusic content material and a direct license between the 2 firms for Spotify within the U.S. and different international locations.
Spotify Wrapped continued to be one of many largest person engagement drivers of the yr, with the annual December listening evaluation serving to ship year-over-year development.
The corporate stated its 35 million internet development of MAUs was a fourth-quarter report. MAUs have been up 5% since final quarter and 12% for the yr.
Spotify reported internet revenue of 367 million euros within the fourth quarter, or $1.81 per share, an enchancment from the earlier quarter and nicely above the online lack of 70 million euros from the year-ago quarter, a lack of 36 cents per share.
Fourth-quarter income of 4.24 billion euros was nicely above the three.67 billion in income from the identical quarter a yr in the past.
First-quarter steering estimates the corporate could have 678 million MAUs, a internet add of three million, with two-thirds anticipated to be premium paid subscribers. Complete income is estimated at 4.2 billion euros, outperforming LSEG-surveyed analysts’ expectations at 4.17 billion.
Spotify inventory is up greater than 20% yr to this point.
