Spotify reported its first full-year profit Tuesday, and an additional 35 million monthly active users.

The audio giant reported 675 million monthly active users, the largest fourth-quarter increase in Spotifys history, as the company reported momentum from strong holiday and Wrapped campaigns. Paid subscribers grew 11 percent year over year to 63 million, up from 252 million last quarter and 3 million above guidance. Both came in above Spotifys guidance.

Total revenue grew 16 percent year over year to 4.2 billion. Operating income finished at a high of 477 million, with Spotifys first full year of operating income hitting 1.4 billion. Operating expenses declined 16 percent year over year in Q4. Ad-supported revenue grew 7 percent year over year, with music and podcast advertising driven by growth in impressions sold, partially offset by softness in pricing.

The Wrapped campaign delivered record-high user engagement, up 10 percent year over year, across 184 markets and 53 languages, according to Spotify.

Spotify expects 678 million monthly active users for the first quarter of 2025, up 3 million monthly active users, with paid subscribers hitting 265 million. Operating income is expected to reach 548 million.

On Jan. 26, Spotify announced a new multiyear deal with Universal Music Group.

I am very excited about 2025 and feel really good about where we are as both a product and as a business, said Daniel Ek, Spotify Founder CEO. We will continue to place bets that will drive long term impact, increasing our speed while maintaining the levels of efficiency we achieved last year. Its this combination that will enable us to build the best and most valuable user experience, grow sustainably and deliver creativity to the world.

With the companys operational headquarters in Stockholm, Sweden, Spotify shares are listed on theNew York Stock Exchangein the form ofAmerican depositary receipts under ticker symbol SPOT. Shares of Spotify were up 8.5 percent in premarket trade Tuesday.