Spotify Technology SA (NYSE:SPOT) shares were blasted to a new all-time high on Tuesday as the music and podcast streamer turned in better fourth-quarter revenue and 2025 guidance than expected.
The Sweden-headquartered group posted results showing quarterly revenue of €4.24 billion, up 16% compared to a year earlier and beating the average Wall Street estimate of €4.14 billion.
However, adjusted earnings per share of €1.76, were short of the €2.03 consensus forecast.
Monthly active users grew 12% year-on-year 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%.
For the first quarter of 2025, Spotify's outlook was for revenue of €4.2 billion as it adds three million net new monthly active users and two million net new subscribers.
"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's founder and chief executive.
"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.
"It’s this combination that will enable us to build the best and most valuable user experience, grow sustainably and deliver creativity to the world."
Over the whole year, total revenue came to €15.7 billion, while the company paid $10 billion in royalties to the music industry.
Spotify completed its first full year where it was profitable in every quarter, with a total operating income of €1.4 billion.