The Sweden-based company had 422 million users at the end of the first quarter of 2022, making it by far the world's most frequented audio platform.

Spotify reported $10.9 billion revenue in 2021.
Spotify reported $10.9 billion revenue in 2021. (Reuters)

Audio streaming platform Spotify has said it is aiming to have one billion users by 2030 as well as an annual revenue of $100 billion in a decade.

Co-founder and CEO Daniel Ek, speaking at an investor day event in New York on Wednesday, 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 $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 around 26 percent, Ek said his goal was to reach 40 percent also within ten years.

READ MORE: Spotify beats profit expectations as subscribers hit 158 million

Over $1B investment

The company is also aiming for an operating margin (sales minus all costs before interest and taxes) of 20 percent, a figure implying the firm 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.

READ MORE: Spotify takes a big jump into the podcasting game

Source: TRTWorld and agencies