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Spotify’s Co-founder and CEO Daniel Ek attends a live recording panel at Acquired, a technology podcast, at the Chase Center in San Francisco, California, U.S., Sept. 10, 2024.

Laure Andrillon | Reuters

Spotify shares climbed 10% on Tuesday after the music streaming company recorded its first full year of profitability, closing the fiscal year with 1.14 billion euros in net income.

Here are the numbers from its fourth-quarter earnings report, compared with analyst expectations:

  • Revenue: 4.24 billion euros vs. 4.19 billion euros expected by analysts polled by LSEG
  • Earnings per share: 1.76 euros vs.1.99 euros expected by analysts polled by LSEG
  • MAUs (monthly active users): 675 million vs. 664.3 million expected by analysts polled by StreetAccount

The Luxembourg-based company reported a 40% growth year over year for gross profit, rising 10% from the previous quarter. Operating income came in at 477 million euros, slightly below guidance.

The company said it paid a record $10 billion in royalties to the music industry in 2024, growth that’s likely to continue with the streamer’s new multiyear publishing agreement with Universal Music Group announced in January.

The deal will include new paid subscription tiers, bundles for music and nonmusic content and a direct license between the two companies for Spotify in the U.S. and other countries.

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Spotify Wrapped continued to be one of the biggest user engagement drivers of the year, with the annual December listening analysis helping deliver year-over-year growth.

The company said its 35 million net growth of MAUs was a fourth-quarter record. MAUs were up 5% since last quarter and 12% for the year.

Spotify reported net income of 367 million euros in the fourth quarter, or $1.81 per share, an improvement from the previous quarter and well above the net loss of 70 million euros from the year-ago quarter, a loss of 36 cents per share.

Fourth-quarter revenue of 4.24 billion euros was well above the 3.67 billion in revenue from the same quarter a year ago.

First-quarter guidance estimates the company will have 678 million MAUs, a net add of 3 million, with two-thirds expected to be premium paid subscribers. Total revenue is estimated at 4.2 billion euros, outperforming LSEG-surveyed analysts’ expectations at 4.17 billion.

Spotify stock is up more than 20% year to date.

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Figure AI sued by whistleblower who warned that startup’s robots could ‘fracture a human skull’

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Figure AI sued by whistleblower who warned that startup's robots could 'fracture a human skull'

Startup Figure AI is developing general-purpose humanoid robots.

Figure AI

Figure AI, an Nvidia-backed developer of humanoid robots, was sued by the startup’s former head of product safety who alleged that he was wrongfully terminated after warning top executives that the company’s robots “were powerful enough to fracture a human skull.”

Robert Gruendel, a principal robotic safety engineer, is the plaintiff in the suit filed Friday in a federal court in the Northern District of California. Gruendel’s attorneys describe their client as a whistleblower who was fired in September, days after lodging his “most direct and documented safety complaints.”

The suit lands two months after Figure was valued at $39 billion in a funding round led by Parkway Venture Capital. That’s a 15-fold increase in valuation from early 2024, when the company raised a round from investors including Jeff Bezos, Nvidia, and Microsoft.

In the complaint, Gruendel’s lawyers say the plaintiff warned Figure CEO Brett Adcock and Kyle Edelberg, chief engineer, about the robot’s lethal capabilities, and said one “had already carved a ¼-inch gash into a steel refrigerator door during a malfunction.”

The complaint also says Gruendel warned company leaders not to “downgrade” a “safety road map” that he had been asked to present to two prospective investors who ended up funding the company.

Gruendel worried that a “product safety plan which contributed to their decision to invest” had been “gutted” the same month Figure closed the investment round, a move that “could be interpreted as fraudulent,” the suit says.

The plaintiff’s concerns were “treated as obstacles, not obligations,” and the company cited a “vague ‘change in business direction’ as the pretext” for his termination, according to the suit.

Gruendel is seeking economic, compensatory and punitive damages and demanding a jury trial.

Figure didn’t immediately respond to a request for comment. Nor did attorneys for Gruendel.

The humanoid robot market remains nascent today, with companies like Tesla and Boston Dynamics pursuing futuristic offerings, alongside Figure, while China’s Unitree Robotics is preparing for an IPO. Morgan Stanley said in a report in May that adoption is “likely to accelerate in the 2030s” and could top $5 trillion by 2050.

Read the filing here:

AI is turbocharging the evolution of humanoid robots, says Agility Robotics CEO

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Here are real AI stocks to invest in and speculative ones to avoid

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Here are real AI stocks to invest in and speculative ones to avoid

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The Street’s bad call on Palo Alto – plus, two portfolio stocks reach new highs

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The Street's bad call on Palo Alto – plus, two portfolio stocks reach new highs

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