It only took 13 years, but Spotify has finally turned a profit.
In a report released last night in New York, Spotify declared that for the first time in company history, Operating Income, Net Income, and Free Cash Flow were all positive.
Monthly active uses grew 29% year to year to 207 million with the number of Premium Subscribers reaching 96 million, up 36% Y/Y.
While ad-supported revenue increase, the growth in programmatic and self-serve (Ad Studio) channels has continued to outpace the growth in direct marketing.
Operating expenses of €305 million in Q4 were down 17% Y/Y, resulting in an operating profit of €94 million, Spotify’s first ever quarterly operating profit.
The result will help with Spotify’s announcement that they have entered into definitive agreements to acquire two of the leading players in the emerging podcast marketplace, Gimlet and Anchor.
Gimlet is a renowned independent producer of podcast content, and Anchor is leading the market for podcast creation, publishing, and monetization services.
Terms of the transactions were not disclosed but the acquisitions would position Spotify to become both the premier producer of podcasts and the leading platform for podcast creators.
Spotify co-founder and CEO, Daniel Ek, says: “These acquisitions will meaningfully accelerate our path to becoming the world’s leading audio platform, give users around the world access to the best podcast content, and improve the quality of our listening experience as well as enhance the Spotify brand.