2024 was his first year being profitable in full reinvention of his model

Spotify has closed 2024 with a historic milestone: It has been his first full year of benefitsafter years of funambulism between some green shoots in idem and quarters chained in red. And he has done it while diversifying beyond music.

Why is it important. The company has not only closed its first year in positive: it has also shown that it can be profitable without sacrificing growth, right now that Wall Street demands results to technological ones and is not made up of future promises.

In figures:

• 675 million monthly active users (+12 % year -on -year).
• Gross margin of 32.2% (its record).
• 477 million euros of operational benefit.
• 10,000 million dollars paid to the music industry (60,000 since it began operating).

The context. Spotify has been transforming silently but radically. It is no longer just a music platform in streaming And it will hardly be. In your catalog there are also …

• 6.5 million podcasts.
• 330,000 VideoPodcasts.
• 350,000 audiobooks.

In fact, according to the company, 270 million of its users have consumed video content.

This type of content is the great opportunity that Spotify has had for the user to continue using the app, but consuming content that does not require payment of Royalties. It is his perfect play: that the user continues in the app but without costing the company so much. Let’s add to that Your commitment to advertising. He is going well.

Between the lines. The strategy goes beyond audio. Spotify is building a complete ecosystem for content creators, similar to the YouTube model. And in the presentation of these results they have checked their model:

• 70% of eligible programs already participate in their program of Partners.
• The number of video creators grows more than 50% year -on -year.
• The aforementioned diversification reduces the dependence of records.

The next. The issue is now if Spotify will be able to maintain this profitability in the coming years, and especially if he will be able to do it with such an aggressive competition to retain our view and ears on their platforms. Tiktok, Apple or An intractable youtube with the new podcasting.

Daniel EK, CEO and founder, points to a more ambitious vision: “We will continue to bet on initiatives that generate a long -term impact.” Reading between the lines, the current profitability can only be the first step of a deeper metamorphosis of your business.

Outstanding image | Xataka with Mockuuuups Studio

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