Spotify Technology said it expects to reach $100-billion of revenue annually in the next 10 years.
said it expects to reach US$100-billion revenue annually in the next 10 years and promised high-margin returns from its costly expansion into podcasts and audiobooks.
To reach its ambitious goal, Spotify would need to make its revenue grow nearly 10-fold from 2021 revenue of $11.4-billion, and CEO Daniel Ek also forecast gross margins to jump to 40% and operating margin to 20% in the same time.“Spotify will put out these pretty audacious targets and we are going after these because that’s how we see the world and we are going to invest behind that,” Ek said.
Ek began the nearly four-hour investor presentation trying to reset Wall Street’s perceptions of the company, saying some may think “we’re a bad business or at least a business with bad margins for the foreseeable future”.