Alexa Spotify expected to reach $100B in revenue in 10 years
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Spotify expected to reach $100B in revenue in 10 years

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Spotify expected to reach $100B in revenue in 10 years

Spotify Technology SA expects to reach $100 billion in annual revenue in the next ten years and promises high-margin returns from its costly expansion into audiobooks and podcasts.

The audio streaming firm hosted its first investor day since going public in 2018, hoping to encourage Wall Street’s enthusiasm despite the retarding global economy.

To reach its aspiring goal, Spotify would need to grow its revenue almost 10-fold from its 2021 revenue of $11.4 billion. CEO Daniel Ek also forecasted gross margins to increase to 40% ad operating margin to 20% during the same time.

CEO Ek said Spotify put out these audacious targets and was going after them because that’s how they view the world and were investing behind them.

Shares of the firm jumped 6.5% on Wednesday after losing nearly 53% of its market value in 2022, poorer than the 24% descent in the S&P 500 communication services sector index, which comprises Spotify and other social media network firms.

Daniel Ek began the almost four-hour investor presentation trying to change Wall Street’s perceptions of the firm, saying some regarded Spotify as a lousy business or at least perceived Spotify as a business with bad margins for the conceivable future.

While it has been a rough start to the year for streaming companies like Spotify and Netflix, the Swedish audio streaming firm has also faced a controversy over moderating its popular Joe Rogan Experience podcast.

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