Spotify has set a goal: to have one billion users by 2030. The streaming service also hopes to have a turnover of 100 billion dollars within ten years, which would amount to almost tenfold its income .
For co-founder Daniel Ek, Spotify can achieve this ambitious goal thanks in particular to the development of podcasts but also of the 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 the leader during the day dedicated to investors.
In 2021, the company achieved a turnover of 9.6 billion euros, or 10.9 billion dollars. 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 minus all costs before interest and taxes) of 20%, which would imply that the group has become clearly profitable, which is not the case today. today. In recent quarters, the online audio service 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.