Audio streaming platform Spotify said on Wednesday it aims to have one billion users by 2030 as well as annual revenue of $100 billion within a decade.
Co-founder and CEO Daniel Ek, speaking at an investor day in New York, said the lofty goal could be achieved in part through an expansion of Spotify’s portfolio of podcasts and audiobooks while making the platform a one-stop-shop for content creators. .
“As a global creator platform, we will provide the infrastructure and resources that will enable 50 million artists and creators to grow and run their own businesses, monetize their work and promote it effectively,” said Ek.
The New York-listed Swedish company reported revenue of 9.6 billion euros ($10.9 billion) for 2021, meaning it would need almost ten times that to hit the mark set Wednesday by Ek.
It also had 422 million users at the end of the first quarter of 2022, making it by far the busiest audio platform in the world.
While in recent quarters the company’s gross margin (revenue less costs directly related to its work) has hovered around 26%, Ek said his goal was to reach 40% as well. ten years from now.
The company is also aiming for an operating margin (sales minus all costs before interest and taxes) of 20%, a figure implying that the company would have become clearly profitable, which is not the case today.
In recent quarters, the online audio platform – now present in 183 countries and territories – has oscillated between a slightly positive and slightly negative operating margin.
Spotify has invested over $1 billion in acquiring notable podcasters as well as building a fully integrated podcast platform, from production to ad management, to make it the global leader in the industry.
Last year, Spotify also bought leading audiobook producer and distributor Findaway.