Spotify Projects First Full-Year Profitability in 2024.
Spotify expects 2024 to be its first full profitable year in its 18-year history. Company CEO Daniel Ek believes that the profitability trend will open up a new growth curve. CFO Christian Luiga also awaits positive cash flows. Spotify dedicated its profitability growth journey to wise investments in products such as podcasts. The company has shown its intention for more wise and disciplined spending plans.
Spotify reported a record gross margin of 31.1% during the third quarter. The company’s gross profit has remained above €1 billion for the last two quarters consecutively. Operating income has reached €454 million. The active users increased by 11% over the last month, reaching a new height of 640 million. The company has also added 12% more subscriptions over the last quarter, counting to 252 million now.
Ek is keen on using AI for the enhancement of Spotify’s services through product innovation and operational efficiency. The company is expected to announce further investments in video at an upcoming event in Los Angeles.
