Spotify shares pop 10% after company reports the first profitable year

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Spotify’s co-founder and CEO Daniel EK participates in a live recording panel at the acquisition, a technology podcast, at the Chase Center in San Francisco, California, USA, September 10, 2024.

Laure Andrillon | Reuters

Spotify Shares rose 10% on Tuesday after Music streaming The company registered its first full year of profitability and closed the financial year with 1.14 billion euros in net income.

Here are the figures from its fourth quarter earnings report compared to the analyst expectations:

  • Revenue: 4.24 billion euros against 4.19 billion euros expected by analysts tuned by LSEG
  • Earnings per Stock: 1.76 euro mod1.99 euros expected by analysts asked by LSEG
  • Maus (Monthly Active Users): 675 million against 664.3 million expected by analysts asked by StreetAccount

The Luxembourg-based company reported a 40% growing year for gross profit and increased 10% from the previous quarter. Operating income came at 477 million euros, a little under guidance.

The company said it paid a record $ 10 billion in royalties to the music industry in 2024, growth that is likely to continue with the streamer’s new perennial Publishing agreement with Universal Music Group advertised in January.

The deal will include new paid subscription levels, bundles of music and non -musical content and a direct license between the two companies for Spotify in the US and other countries.

Spotify wrapped continued to be one of the greatest user engagement drivers of the year, where the annual listening analysis in December helps deliver growth from years over year.

The company said its 35 million net growth of Maus was a record in the fourth quarter. Maus rose 5% since the last quarter and 12% for the year.

Spotify reported a net income of 367 million euros in the fourth quarter, or $ 1.81 per year. Share, an improvement from the previous quarter and well above the net loss of 70 million euros from the year before the quarter, a loss of 36 cents per year. Stock.

Turnover of the fourth quarter of 4.24 billion euros was well over 3.67 billion in revenue from the same quarter a year ago.

Guidance for first quarterly guidance will have the company 678 million MAUs, a net addition of 3 million, with two-thirds expected to be Premium paid subscribers. Total revenue is estimated at 4.2 billion euros, which surpasses LSEG-examined analysts’ expectations of 4.17 billion.

The Spotify share has risen more than 20% years to date.