Spotify | One billion users targeted by 2030

(New York) Spotify is aiming for one billion users by 2030 and US$100 billion in revenue within ten years, which would nearly increase its revenue tenfold, the online audio service said on Wednesday. .

Posted at 6:55 p.m.

For Daniel Ek, its co-founder, Spotify – originally specializing in music – can achieve this ambitious objective thanks in particular to the development of podcasts but also of its audio book activity.

“I know it’s complicated to put all this into a financial model, because frankly, this type of company has never existed before,” said Daniel Ek during the day dedicated to investors.

In 2021, the Swedish company, listed in New York, achieved a turnover of 9.6 billion euros, or 10.9 billion dollars (12.9 billion CAD).

It had 422 million users at the end of the first quarter of 2022, which already makes it, by far, the most popular audio platform in the world.

Spotify also expects a gross margin (turnover less costs directly related to the activity) of 40% within ten years, while it has evolved between 25% and 26% in recent quarters.

The company also intends to achieve an operating margin (turnover less all costs before interest and taxes) of 20%, which would imply that the group has become clearly profitable, which is not the case today. .

In recent quarters, the online audio service, which is present today in 183 countries and territories, has oscillated between a modestly positive and slightly negative operating margin.

Spotify has invested more than a billion dollars to acquire podcast players and build a fully integrated offer, from production to advertising management, which today makes it the leading global player in the sector.

Last year, the group also took control of audiobook specialist Findaway.


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