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• CEO Daniel Ek expects gross margins to rise to 40% in the next 10 years
Spotify Technology SA (NYSE: SPOT) said on Wednesday it expects to reach $100 billion revenue annually in the next 10 years.
At the company’s first investor day since going public in 2018, CEO Daniel Ek also forecast gross margins to rise to 40% and operating margin to 20% in the next 10 years.
"Spotify will put out these pretty audacious targets and we are going after these because that's how we see the world and we are going to invest behind that," Ek said.
Shares of the company rose 6.5% on Wednesday.
Spotify has committed more than $1 billion to podcasting and also expects podcast revenue to increase this year.
Ek said the podcast business could generate margins between 40% to 50% while audiobooks have the potential to generate margins of over 40%.
Picture Credits: Reuters
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