Spotify Aims Billion Users by 2030 &100 Billion Annual Revenue in a Decade

Audio streaming platform Spotify said Wednesday that it aims to reach 1 billion users by 2030, as well as 100 billion in annual revenue within a decade.

Co-founder and CEO Daniel One, speaking at the Investor Day event in New York, said the ambitious goal could be achieved, in part, by expanding the podcast and audiobook portfolio. , By creating the platform as a one-stop-shop for content creators

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“As the World’s Creators Platform, we will provide the infrastructure and resources to enable 50 million artists, and the creators to grow and run their businesses, monetize their work, and effectively promote it. It will allow,” Ek said.

The New York and Sweden-based company has reported revenue of 9.6 billion euros ($10.9 billion) for 2021, meaning it will need to grow almost tenfold to reach the target set on Wednesday.

It also had 422 million subscribers at the end of the first quarter of 2022, making it by far the most frequented audio platform in the world.

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While the company’s gross margin (revenue minus costs directly related to its operations) has risen to around 26 percent in recent quarters, one said its goal was to hit 40 percent in ten years.

The company also plans a 20% operating margin (sales minus all costs before interest and taxes), a statistic that shows the company will be profitable, which is not the case today.

In recent quarters, the online audio platform, now available in 183 countries and territories, has fluctuated between a moderately positive and slightly negative operating margin.

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Spotify has invested more than $1 billion in acquiring top podcasters and building a fully integrated podcast platform, from production to ad management, to become a world leader in the field.

Last year, Spotify also bought Findaway, a major producer and distributor of audiobooks.

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