Spotify hits record $600 stock price following strong Q4 earnings

For Q4 2024, Spotify reported revenue of $4.40 billion, reflecting a 16% year-over-year (YoY) increase. Subscription revenue rose 17% YoY to $3.85 billion, while advertising revenue saw a 7% YoY growth, reaching $557.17 million. The company’s focus on profitability was evident, with operating expenses decreasing 16% YoY and free cash flow jumping 121% YoY to $909.94 million. Operating income for the quarter came in at $494.91 million.

Spotify’s user base also continued to expand, with monthly active users (MAUs) growing 12% YoY to 675 million. A shifting geographic distribution saw markets outside North America and Europe accounting for 56% of total users, while North America’s share declined to 17%. On the subscription side, paid subscribers increased 11% YoY to 263 million, with Europe leading at 37%, followed by North America (26%), Latin America (22%), and the Rest of the World (14%), the latter seeing a 1% YoY increase.

Looking ahead, Spotify has projected 678 million MAUs and 265 million paid subscribers for Q1 2025, alongside expected revenue of $4.36 billion and operating income of $568.56 million.

During the earnings call, Spotify CEO Daniel Ek described 2025 as a “year of accelerated execution”, emphasising faster product development, expansion of superfans-focused music experiences, and disciplined resource allocation. Ek hinted at upcoming video content, a premium subscription tier, and new ways to enhance artist-fan engagement.

Ek also addressed Spotify’s renewed deal with Universal Music Group (UMG) and Universal Music Publishing Group (UMPG), suggesting that 2025 would see a greater focus on music-related innovations, though he declined to reveal specific details. Meanwhile, discussions on potential restrictions on family plan sharing remained open-ended, with executives refraining from making definitive statements on the matter.

With record-breaking stock performance and a clear push for innovation, Spotify’s financial and strategic outlook positions it for continued growth in the competitive streaming industry.