02:12 PM EST, 02/04/2025 (MT Newswires) -- Spotify Technology ( SPOT ) on Tuesday issued an upbeat revenue outlook for the first quarter after closing out its first full year of profitability.

For the ongoing quarter, Spotify ( SPOT ) expects revenue of 4.2 billion euros ($4.36 billion). Analysts polled by FactSet are looking for 4.18 billion euros.

The company anticipates adding roughly 3 million net new monthly active users, or MAUs, in the first quarter, bringing the total to 678 million. It expects its premium subscribers to increase by 2 million to 265 million. The consensus on Visible Alpha is for 676.5 million MAUs and 263.5 million premium subscribers.

For 2024, the company reported earnings per share of 5.50 euros, swinging from a loss of 2.73 euros in 2023, while revenue grew to 15.67 billion euros from 13.25 billion euros. The Street was looking for EPS of 5.79 euros and revenue of 15.57 billion euros.

Spotify ( SPOT ) closed out its first full year of profitability, Chief Executive Daniel Ek said on an earnings conference call, according to a FactSet transcript. "I expect 2025 to deliver healthy growth alongside improved profitability."

Spotify's ( SPOT ) US-listed shares were up 12% in Tuesday afternoon trade.

Revenue jumped 16% year over year to 4.24 billion euros in the quarter through Dec. 31, topping Wall Street's views for 4.15 billion euros. The company posted fourth-quarter earnings of 1.76 euros a share, swinging from a 0.36-euro loss a year earlier. The Street was looking for EPS of 1.99 euros.

Premium revenue grew 17% to 3.71 billion euros, while ad-supported sales increased 7%. MAUs jumped 12% to 675 million, while premium subscribers advanced 11% to 263 million, compared with the Visible Alpha consensus of 666.4 million and 260.4 million, respectively.

"With respect to the MAU net additions, we had an exceptionally strong (fourth quarter) without performance driven by developing markets, and we are not prioritizing retention of the recent influx of lower engagement users in quarter one as we continue to focus on growing higher value users," Chief Financial Officer Christian Luiga told analysts. "We plan to make targeted investments in our core offerings, which may make our sequential gross margin cadence a bit more variable over the course of this year."

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