Spotify posted solid results for the fourth quarter of 2024 and the full year. According to its financial report, its total revenue increased 16% year-over-year to €4.2 billion. Operating profit for the quarter reached €477 million and amounted to €1.4 billion for the 2024 fiscal year. It was the first time the music streamer reported a profitable year.

Ad-supported revenue rose 7% across all regions. Both music and podcast advertising was driven by growth in impressions sold, partially offset by softness in pricing, according to the report.

The music streamer also reported the addition of 35 million monthly active users, the largest fourth-quarter net addition in the company’s history, beating internal projections of 25 million. In total, Spotify now has 675 million active users, representing a 12% year-over-year jump.

Ad-supported monthly active users increased by 12% year-over-year to 425 million, and premium subscribers grew by 11% year-over-year to 263 million. This was despite the implementation of two consecutive price increases for premium subscriptions during the year. Within premium, the average revenue per user rose by 5% year-over-year.

Spotify attributes its strong performance to the addition of video to its platform.

The company launched a selection of video podcasts in 2020 and then expanded the feature in 2022 to allow all creators in Canada, the U.S, New Zealand, Australia and the U.K. to upload video content. Recently, it announced that starting this month it will offer premium subscribers in Canada ad-free podcast viewing and a payment model for podcasters who upload video content. The app is also making it easier for audiences to stream video content in the foreground or background without interrupting the experience. According to its data, there are currently more than 330,000 video podcasts on the platform.

Its audiobook catalogue also grew, with more than 350,000 titles available to listeners in a growing number of select markets. Spotify also launched offline backup listening, which allows premium users to access their playlists weven if they’re not connected to wifi and have not downloaded the content. It also launched the Partner Program, which helps creators make money from their videos through audience payments and ads. Spotify says more than 70% of eligible programs in the U.S., U.K., Canada and Australia have already been signed up.