Co-founder and CEO Daniel Ek, speaking at an investor day event in New York, said the ambitious 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 the world’s creator platform, we will provide the infrastructure and resources that will enable 50 million artists and creators to grow and manage their own businesses, monetize their work, and effectively promote it,” said Ek.
The Sweden-based, New York-listed company reported 9.6 billion euros ($10.9 billion) in revenue for 2021, meaning it would need a nearly tenfold increase to hit the mark set out on Wednesday by Ek.
It also had 422 million users at the end of the first quarter of 2022, making it by far the world’s most frequented audio platform.
While in recent quarters the company’s gross margin (revenue minus costs directly related to its work) has hovered at around 26 percent, Ek said his goal was to reach 40 percent, also within ten years.
Spotify is also aiming for an operating margin (sales minus all costs before interest and taxes) of 20 percent, a figure implying 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 fluctuated between a modestly positive and slightly negative operating margin.
Spotify has invested more than $1 billion in acquiring notable podcasters as well as building a fully integrated podcast platform, from production to advertising management, to make it the world leader in the sector.
Last year, Spotify also bought the major audio book producer and distributor Findaway.