Spotify has achieved an annual operating profit for the first time since its founding 16 years ago. The Swedish streaming company benefited from rising subscription numbers and a strict austerity course.

The corporation's stock rose by 13.24 percent following the announcement of the figures, as Spotify also promised a further increase in operating profit for the first quarter of 2025. In the fourth quarter, the operating result was slightly below its own forecast at 477 million euros, but for the entire year, it totaled 1.4 billion euros – the first annual surplus in the company's history.

Revenue rose 16 percent year-on-year to 4.2 billion euros, driven by an 11 percent increase in premium subscribers to a total of 263 million. The higher number of users and price increases led to a 5 percent increase in average revenue per customer to 4.85 euros. Monthly active users increased to 675 million – 35 million more than in the previous quarter and above the analyst expectation of 664.9 million.

The turnaround is the result of a strict cost-cutting course.

For the first quarter of 2025, Spotify forecasts an operating profit of 548 million euros and a further increase in monthly users to 678 million. The number of premium subscribers is expected to increase by two million.

We will continue to focus on long-term opportunities, increase our speed while maintaining the level of efficiency achieved," said CEO Daniel Ek. "I am very optimistic about 2025 and convinced that we are at an excellent point both as a product and as a company.

Particularly the year-end feature "Spotify Wrapped," which creates personalized reviews of the most-listened-to songs of a year, led to double-digit growth rates in user interaction – especially in Europe, North America, and Latin America.

In addition, the company introduced ad-free video podcasts for premium users in the USA, UK, Australia, and Canada last year. In the future, Spotify wants to focus more on personalized AI products and test different subscription models.