France-headquartered music streaming service Deezer has published its financial results for the full year ending December 31, 2024.
The company’s consolidated revenues reached €541.7 million, up 12.7% YoY at constant currency, exceeding its financial guidance of 10% annual growth.
That annual revenue figure converts to $586 million at the annual EUR-USD exchange rate published by the IRS.
The company’s total subscriber base, meanwhile, (across direct subs and subs gained via telco partnerships etc.) reached 9.7 million at the end of 2024, down 3% YoY.
Deezer attributed its double-digit consolidated revenue growth to partnerships (such as RTL+ and Meli+) and the “12-month positive impact of price increases in [its] Direct segment.”
Deezer reported an operating loss of €27.5 million ($29.76m) for 2024 compared to an operating loss of €64.4 million in 2023, representing an improvement of €36.9 million.
Deezer said that this change “mainly reflected increased adjusted gross profit and lower operating costs, including non-recurring charges related to licensing agreements (which amounted to €10.1 million in 2024 compared to €18.8 million in 2023)”.
Deezer generated €312.8 million ($338.52m) in its home market of France, up 8.6% YoY at Constant Currency (see below).
The company’s ‘Rest of World’ Segment, meanwhile, i.e. everywhere else it’s in the world that it’s available other than France, the company geenerated €228.9 million ($247.72m), up 18.7% YoY at constant currency.
Deezer said in its investor presentation today (March 18) that it ended 2024 with a “solid financial position and free cash flow positive for the first time in [the company’s] history.”
The company’s free cash flow totaled €6.6 million ($7.14m) in 2024 compared to €44.3 million in 2023.
The company pinned this change in its cash flow to the “sharp reduction of adjusted EBITDA loss, the higher generation of working capital as compared to 2023 (€23.8 million compared to €12.5 million), as well as lower one-off items (including the impact of tax regularization)”.
Deezer’s Adjusted EBITDA improved by €24.8 million to €4 million($4.32m) in 2024 compared to €28.8 million in 2023.
Deezer also noted today that it also achieved “Adjusted EBITDA break-even in H2 [2024] for the first time in its history”.
CEO Alexis Lanternier told investors today that, “looking ahead to 2025,” the company is “on track to achieve positive Adjusted EBITDA and free cash flow”.
Deezer splits its revenues into three segments on its balance sheet, ‘Partnerships‘; ‘Direct‘ and ‘Other.’
The company’s Partnerships revenues amounted to €168.3 million ($182.14m) for 2024, up 26.6% YoY at constant currency, and driven, according to Deezer, by “good performance” of new and existing deals with large Telecom operators in RoW, the growth of RTL+, Meli+ and Sonos Radio HD.
Deezer’s ‘Direct’ revenues, meanwhile, reached €344.4 million ($372.72m) in 2024, up 4.3% YoY at constant currency.
The platform said this revenue growth was driven by several factors, including “improved geographic mix on selected markets,” which it said led to continued subscriber growth in France of 4.3% on a like-for-like basis.
Deezer’s ‘Other’ revenue, which includes advertising and ancillary revenue, amounted to €29.0 million ($31.38m) in 2024 compared to €17.8 million in 2023, representing an increase of 63.2% YoY at constant currency.
This performance was driven, according to Deezer, by the delivery of its Sonos radio partnership launched in Q2 2023 and renewed in September 2024, and the contribution of its “new content of well-being application Zen by Deezer licensed to partners since Q2 2024”.
The company’s adjusted Gross Profit amounted to €133.7 million ($144.69m), increasing by 21.2% compared to 2023, due to a “higher level of activity and more favorable offer mix in favor of Direct, improved terms with labels and the licensing of Zen content to partners.”
Deezer’s adjusted gross profit margin improved from 22.7% in 2023 to 24.7% in 2024.
“2024 was a landmark year for Deezer, marked by progress, innovation, and growth. We achieved full-year revenue growth of 12%, above our financial targets, reached Adjusted EBITDA break-even in the second half and Deezer became free cash flow positive for the first time.”
Alexis Lanternier, Deezer
Commenting on the platform’s latest financial results, Deezer CEO Alexis Lanternier, said: “2024 was a landmark year for Deezer, marked by progress, innovation, and growth. We achieved full-year revenue growth of 12%, above our financial targets, reached Adjusted EBITDA break-even in the second half and Deezer became free cash flow positive for the first time.
“We also expanded our subscriber base in France and saw strong momentum in our Partnerships segment. These milestones are a testament to the hard work and dedication of our entire team, reflecting Deezer’s ability to execute on its strategic vision with discipline and focus. Looking ahead to 2025, we are on track to achieve positive Adjusted EBITDA and free cash flow.”
Added Lanternier: “As we enter a new cycle of value creation and growth, we are focused on pioneering innovations that cater to the next generation of music lovers—offering a more social, personalized experience and exclusive, direct engagement with their favorite artists.
“This marks an exciting new chapter for Deezer, one filled with opportunities. With our outstanding product, amazing team, and strong financial position, I am confident that we will deliver significant value for fans, artists, partners, and shareholders in the years to come.”Music Business Worldwide
