Spotify Hits Record €197M Net Profit, €3.64B Revenue, and €1B Gross Profits in Q1

Apr 23, 2024, 12:30 PM

Spotify has reported a significant turnaround in its financial performance for the first quarter of 2024, achieving a net profit of €197 million, a stark contrast to the €225 million loss in the same period last year. The company's revenue rose by 20% year-over-year to €3.64 billion, surpassing analysts' expectations of €3.61 billion. This revenue increase was driven by a 14% rise in premium subscribers, totaling 239 million, although this was slightly below the forecast of 617.9 million. The operating income for the quarter was €168 million. Despite these gains, Spotify's monthly active users (MAUs) saw a slower growth rate, increasing by 19% to 615 million, which was below the expected 617.9 million. Spotify also surpassed €1 billion in gross profits for the first time, as stated by CEO Daniel Ek, who highlighted 2024 as a 'year of monetization'. Following these results, Spotify's share price saw a significant increase.