Spotify expects to reach $100 billion in revenue in 10 years

Spotify Technology SA (SPOT.N) on Wednesday said it expects to reach $100 billion revenue annually in the next 10 years

and promised high-margin returns from its costly expansion into podcasts and audiobooks.

The audio streaming company hosted its first investor day since going public in 2018, hoping to stoke Wall Street's enthusiasm despite the slowing global economy.

To reach its ambitious goal, Spotify would need to make its revenue grow nearly 10-fold from 2021 revenue of $11.4 billion

and Chief Executive Daniel Ek also forecast gross margins to jump to 40% and operating margin to 20% in the same time.

Shares of the company rose 5% on Wednesday after losing 53% of its market value so far in 2022

worse than the 24% drop in the S&P 500 communication services sector index (.SPLRCL), which includes Spotify and other media and social network companies.

"We are performing much better than you probably suspect, roughly 28.5% (margins) which is a significant progress in reaching our 30% to 35% long-term goal," Chief Executive Daniel Ek told investors.

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