MBW’s Stat Of The Week is a series in which we highlight a data point that deserves the attention of the global music industry. Stat Of the Week is supported by music data analytics firm Chartmetric.
Spotify saw its global Premium Subscriber base grow to 263 million paying users in Q4 – and achieved its first full year of operating profit in 2024.
That’s according to Spotify’s investor filing published today (February 4). The filing shows that the streaming company’s global Premium Subscriber base of 263 million paying users in Q4 2024 (ending December 31) was up 11% year over year.
SPOT’s paid user base of 263 million subs was up by 4%, or 11 million net subscribers, on the 252 million the company counted at the end of the prior quarter (Q3 2024).
The music streaming company says that its 11million net subscriber additions in Q4 “significantly outperformed” – surpassing guidance by 3 million subs.
In the 12 months to the end of December, Spotify added +27 million net paying subscribers. (It finished 2023 with 236 million paying subs.)
Spotify also reports that its operating income finished at “a record high” of €477 million ($509.48m) in Q4, driving the company’s first full year of Operating Income profitability to €1.4 billion ($1.495bn).
Commenting on the company’s latest results, Daniel Ek, Spotify Founder and CEO, said: “I am very excited about 2025 and feel really good about where we are as both a product and as a business.”
Credit: Sipa US/Alamy
“I am very excited about 2025 and feel really good about where we are as both a product and as a business.”
Daniel Ek
Added Ek: “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.
“It’s this combination that will enable us to build the best and most valuable user experience, grow sustainably and deliver creativity to the world.”
Monthly Active Users
Spotify’s total global Monthly Active Users (MAUs) grew 12% YoY to 675 million in Q4 2024 and by 5% (35m) compared to the previous quarter (Q3 2024) when the platform counted 640 million MAUs.
The company’s 675 million MAU additions in Q4 were also 10 million ahead of guidance, with SPOT noting that its “net additions of 35 million [MAUs] marked the largest Q4 in [its] history”.
SPOT reports that its quarterly MAU performance reflected growth across all regions, led by its Rest of World and Latin America (see below) geographic segments, which accounted for 34% of and 22% of SPOT’s global MAU base, respectively.
The company also cites “shifts in competitor dynamics in select developing markets” as a driver of both MAU and Premium subscriber growth.
Rival streaming service TikTok Music notably shut down on November 28 in the five regions where the app was previously live: Indonesia, Brazil, Australia, Singapore and Mexico.
Premium revenue
In terms of finances, Spotify reports that its Premium subscriber growth translated into Premium revenue of €3.705 billion (USD $3.957bn) in Q4 2024.
Spotify’s Premium revenue was up 19% YoY at constant currency (see below).
Premium revenues were driven by subscriber growth of 11% YoY and a Premium ARPU (Average Revenue Per User) increase of 7% YoYat constant currency to €4.85 ($5.18).
Excluding the impact of FX, SPOT reports that its ARPU performance was driven by “price increase benefits, partially offset by product/market mix”.
In terms of subscriber performance geographically, Spotify reports growth across all regions with “outperformance” led by “Rest of World” which accounted for 14% of SPOT’s Premium Subscriber base at the end of Q4.
North America and Europe accounted for 26% and 37% of SPOT’s global Premium subscriber base at the end of Q4, respectively, down from 27% and 38% respectively in Q4 2023.
Ad-supported revenue
Spotify’s ad-supported revenue, meanwhile, hit €537 million ($573.56m) in Q4, up 6% YoY at constant currency (see below).
Spotify reports that its Ad-supported revenue performance reflected YoY growth across all regions and that “both Music and Podcast advertising was driven by growth in impressions sold, partially offset by softness in pricing”.
SPOT notes in its investor presentation that its “automated sales channels were the largest contributors to overall advertising growth”.
Profitability
The company’s Gross Margin finished at 32.2% in Q4.
Meanwhile, Spotify posted a quarterly operating income of over half a billion dollars – at €477 million ($509.48m) – in the quarter.
Spotify noted that its “operating Income finished at a record high” and drove “Spotify’s first full year of Operating Income to €1.4 billion” ($1.495bn).
According to Spotify, its operating Income of €477 million ($509.48m) reflected “lower personnel and related costs and lower marketing spend, partially offset by €96 million ($102.53m) in Social Charges At the end of Q4″.
Spotify reports that its workforce consisted of 7,261 full-time employees globally at the end of 2024.
SPOT’s Operating Income Q4 2024 of €477 million was €4 million below guidance.
In terms of guidance for Q1 2025, Spotify forecasts reaching 678 million MAUs, an addition of around 3 million net new MAUs in the quarter.
The company projects its total Premium Subscriber base to hit 265 million in Q1, an addition of approximately 2 million net new subscribers in the quarter.
Spotify forecasts an operating income of €548 million for Q1, and total revenue of €4.2 billion.
All EUR-USD conversions made at the average rate of the relevant period according to the European Central Bank
Chartmetric is the all-in-one platform for artists and music industry professionals, providing comprehensive streaming, social, and audience data for everyone to create successful careers in music.Music Business Worldwide
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