Music streaming platform, Spotify, announced on Tuesday that it has exceeded 600 million monthly users as of the end of 2023 and anticipates a profitable start to 2024, according to a statement released following its fourth-quarter earnings report.

CEO Daniel Ek expressed optimism about the company’s performance, highlighting a significant year of growth. “Spotify had a very strong quarter, rounding out a great year of truly remarkable growth across the company,” Ek shared on X following the publication of its fourth-quarter earnings.

By the end of 2023, the company boasted 602 million monthly active users (MUAs), marking a 23 percent increase compared to the previous year. Additionally, paying subscribers, which form the cornerstone of Spotify’s revenue, grew by 15 percent to reach 236 million.

Despite its success, Spotify reported an operating loss of 446 million euros in 2023, although this represented an improvement over the 659 million euro loss in 2022. Notably, the company has yet to achieve a full-year net profit, despite sporadic quarterly profits.

To streamline operations, Spotify announced in December a workforce reduction of approximately 17 percent, following earlier cuts in January and June 2023. Moreover, in July, the company adjusted its premium subscription prices in several markets globally, aligning with similar adjustments by competitors like Apple and Amazon.

Spotify’s growth strategy has involved substantial investments, including expansions into new markets and exclusive content such as podcasts. Last week, the company renewed its partnership with Joe Rogan for his highly popular podcast, securing a “multi-year partnership” deal.

Looking ahead to the first quarter of 2024, Spotify anticipates reaching 618 million MUAs and achieving an operating profit of 180 million euros.

[Leadership]