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Investing.com -- Spotify Technology S.A. reported fourth-quarter 2024 results that exceeded revenue expectations and provided upbeat guidance, sending shares soaring 7.5% in early trading.
The music streaming giant posted revenue of €4.24 billion, surpassing analyst estimates of €4.14 billion and marking a 16% increase YoY. However, adjusted earnings per share came in at €1.76, missing the consensus forecast of €2.03.
Spotify (NYSE:SPOT)’s monthly active users grew 12% YoY to 675 million, while paid subscribers increased 11% to 263 million. The company’s gross margin climbed significantly, rising 555 basis points YoY to 32.2%.
Looking ahead, Spotify provided solid guidance for the first quarter of 2025, projecting revenue of €4.2 billion. The company also anticipates adding approximately 3 million net new monthly active users and 2 million net new subscribers in Q1.
"I am very excited about 2025 and feel really good about where we are as both a product and as a business," said Daniel Ek, Spotify Founder & CEO. "We will continue to place bets that will drive long term impact, increasing our speed while maintaining the levels of efficiency we achieved last year."
Spotify’s free cash flow reached €877 million in Q4, bringing the full year 2024 free cash flow generation to €2.3 billion. The company ended the quarter with a strong liquidity position, reporting €7.5 billion in cash, cash equivalents, restricted cash, and short-term investments.