Spotify Q4 Earnings: Soaring Profits
Here's our initial take on Spotify's (NYSE: SPOT) fourth-quarter financial report.
Spotify turned its attention to profits and free cash flow in 2024, and boy did it deliver. Through a combination of price increases and cost cutting, Spotify boosted profit margins considerably while maintaining solid subscriber growth. Revenue grew at a double-digit pace in the fourth quarter, and gross margin continued its ascent.
Spotify ended the year with 263 million premium subscribers, adding 11 million new subscribers in the fourth quarter. That was far above the company's guidance of 3 million net adds. Average revenue per premium subscriber jumped by 5% year over year thanks to price hikes. These two factors pushed up premium revenue by 17% in the fourth quarter.
Source Fool.com
