Spotify Technology SA posted another quarter of better-than-expected subscriber growth, with the Swedish music company recording its first-ever annual profit.

Price increases and cost discipline helped the audiostreaming giant pivot from heavy spending on growth to sustained profits.

Spotify shares climbed 10% after the music streaming company recorded its first full year of profitability. The company said it paid a record $10 billion in royalties to the music industry in 2024. Spotify Wrapped continued to be one of the biggest user engagement drivers of the year,