MBW’s Stat Of The Week is a collection during which we spotlight an information level that deserves the eye of the worldwide music trade. Stat Of the Week is supported by music knowledge analytics agency Chartmetric.
Spotify noticed its world Premium Subscriber base develop to 263 million paying customers in This autumn – and achieved its first full yr of working revenue in 2024.
That’s in keeping with Spotify’s investor submitting printed in the present day (February 4). The submitting reveals that the streaming firm’s world Premium Subscriber base of 263 million paying customers in This autumn 2024 (ending December 31) was up 11% yr over yr.
SPOT’s paid consumer base of 263 million subs was up by 4%, or 11 million internet subscribers, on the 252 million the corporate counted on the finish of the prior quarter (Q3 2024).
The music streaming firm says that its 11million internet subscriber additions in This autumn “considerably outperformed” – surpassing steering by 3 million subs.
Within the 12 months to the top of December, Spotify added +27 million internet paying subscribers. (It completed 2023 with 236 million paying subs.)
Spotify additionally studies that its working revenue completed at “a document excessive” of €477 million ($509.48m) in This autumn, driving the corporate’s first full yr of Working Earnings profitability to €1.4 billion ($1.495bn).
Commenting on the corporate’s newest outcomes, Daniel Ek, Spotify Founder and CEO, stated: “I’m very enthusiastic about 2025 and really feel actually good about the place we’re as each a product and as a enterprise.”
Credit score: Sipa US/Alamy
“I’m very enthusiastic about 2025 and really feel actually good about the place we’re as each a product and as a enterprise.”
Daniel Ek
Added Ek: “We are going to proceed to put bets that can drive long-term affect, growing our velocity whereas sustaining the degrees of effectivity we achieved final yr.
“It’s this mix that can allow us to construct one of the best and Most worthy consumer expertise, develop sustainably and ship creativity to the world.”
Month-to-month Energetic Customers
Spotify’s complete world Month-to-month Energetic Customers (MAUs) grew 12% YoY to 675 million in This autumn 2024 and by 5% (35m) in comparison with the earlier quarter (Q3 2024) when the platform counted 640 million MAUs.
The corporate’s 675 million MAU additions in This autumn have been additionally 10 million forward of steering, with SPOT noting that its “internet additions of 35 million [MAUs] marked the most important This autumn in [its] historical past”.
SPOT studies that its quarterly MAU efficiency mirrored development throughout all areas, led by its Remainder of World and Latin America (see under) geographic segments, which accounted for 34% of and 22% of SPOT’s world MAU base, respectively.
The corporate additionally cites “shifts in competitor dynamics in choose growing markets” as a driver of each MAU and Premium subscriber development.
Rival streaming service TikTok Music notably shut down on November 28 within the 5 areas the place the app was beforehand stay: Indonesia, Brazil, Australia, Singapore and Mexico.
Premium income
When it comes to funds, Spotify studies that its Premium subscriber development translated into Premium income of €3.705 billion (USD $3.957bn) in This autumn 2024.
Spotify’s Premium income was up 19% YoY at fixed foreign money (see under).
Premium revenues have been pushed by subscriber development of 11% YoY and a Premium ARPU (Common Income Per Consumer) improve of 7% YoYat fixed foreign money to €4.85 ($5.18).
Excluding the affect of FX, SPOT studies that its ARPU efficiency was pushed by “value improve advantages, partially offset by product/market combine”.
When it comes to subscriber efficiency geographically, Spotify studies development throughout all areas with “outperformance” led by “Remainder of World” which accounted for 14% of SPOT’s Premium Subscriber base on the finish of This autumn.
North America and Europe accounted for 26% and 37% of SPOT’s world Premium subscriber base on the finish of This autumn, respectively, down from 27% and 38% respectively in This autumn 2023.
Advert-supported income
Spotify’s ad-supported income, in the meantime, hit €537 million ($573.56m) in This autumn, up 6% YoY at fixed foreign money (see under).
Spotify studies that its Advert-supported income efficiency mirrored YoY development throughout all areas and that “each Music and Podcast promoting was pushed by development in impressions offered, partially offset by softness in pricing”.
SPOT notes in its investor presentation that its “automated gross sales channels have been the most important contributors to general promoting development”.
Profitability
The corporate’s Gross Margin completed at 32.2% in This autumn.
In the meantime, Spotify posted a quarterly working revenue of over half a billion {dollars} – at €477 million ($509.48m) – within the quarter.
Spotify famous that its “working Earnings completed at a document excessive” and drove “Spotify’s first full yr of Working Earnings to €1.4 billion” ($1.495bn).
In response to Spotify, its working Earnings of €477 million ($509.48m) mirrored “decrease personnel and associated prices and decrease advertising spend, partially offset by €96 million ($102.53m) in Social Expenses On the finish of This autumn″.
Spotify studies that its workforce consisted of 7,261 full-time workers globally on the finish of 2024.
SPOT’s Working Earnings This autumn 2024 of €477 million was €4 million under steering.
When it comes to steering for Q1 2025, Spotify forecasts reaching 678 million MAUs, an addition of round 3 million internet new MAUs within the quarter.
The corporate tasks its complete Premium Subscriber base to hit 265 million in Q1, an addition of roughly 2 million internet new subscribers within the quarter.
Spotify forecasts an working revenue of €548 million for Q1, and complete income of €4.2 billion.
All EUR-USD conversions made on the common fee of the related interval in keeping with the European Central Financial institution
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