Spotify are making a profit for the first time in 13 years

Spotify have been leading the music streaming revolution for 10+ years and at last the company has turned a profit for the first time.

Spotify have revealed their quarterly report for Q4 2018 and it shows the company is continuing their great growth. In addition the streaming service has a positive Operating Income, Net Income, and Free Cash Flow for the first time in the company’s history.

The report shows that their overall Q4 revenue stood at €1,495 million, a 30% year-on-year increase. They reported their first every quarterly Operating profit for Q4 2018, with an Operating Profit of €94 million, around $107 million, helped by operating expenses dropping 17% year-on-year.

Although they’ve seen great quarter the company are expecting a loss of €50 to €100 million (roughly $57 to $113 million) in the next quarter. For the year of 2019 the company predicts a €200 to €360 million loss (roughly $227 to $409 million).

Although Spotify are incredibly successful and are only forecast to see yet more growth this year, the company is more focused on expansion than profiting. As they take a new focus on podcasts they have acquired two giant podcasting producers; Anchor and Gimlet. In addition they expect to spend $400-$500 million on multiple acquisitions throughout 2019.

Looking at the year ahead Spotify expect to end the year with 245-265 million total monthly active users, 117-127 million of those being Premium subscribers. They predict that they could have 100 million paying subscribers by the end of the first quarter of 2019.

Head of Social Media and Marketing, RouteNote

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