Spotify shares pop 10% after firm reviews first worthwhile yr

Spotify shares climbed 10% Tuesday after the music streaming firm recorded its first full yr of profitability, closing the fiscal yr with 1.14 billion euros in web earnings.

Listed below are the numbers from their fourth-quarter earnings report:

• Income: 4.24 billion euros vs. 4.19 billion euros anticipated by LSEG
• Earnings per share: 1.76 euros vs.1.99 euros anticipated from LSEG
• MAUs (month-to-month energetic customers): 675 million vs. 664.3 million anticipated by StreetAccount

The Luxembourg-based firm reported a 40% progress year-over-year for gross revenue, rising 10% from the earlier quarter. Working earnings got here in at 477 million euros, barely under steering.

The corporate stated it paid a document $10 billion in royalties to the music business in 2024, progress that is prone to proceed with the streamer’s new multi-year publishing settlement with Common Music Group introduced in January.

The deal will embody new paid subscription tiers, bundles for music and non-music content material and a direct license between the 2 corporations for Spotify within the U.S. and a number of nations.

Spotify Wrapped continued to be one of many largest consumer engagement drivers of the yr, with the annual December listening evaluation serving to ship year-over-year progress.

The corporate stated its 35 million web progress of MAUs was a fourth-quarter document. MAUs have been up 5% since final quarter and 12% for the yr.

Spotify reported web earnings of 367 million euros within the fourth quarter, $1.81 per share, an enchancment from the earlier quarter and properly above the web 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 properly above the three.67 billion in income from the identical quarter a yr in the past.

Spotify inventory is up over 20% yr thus far.