Spotify expects to reach $100 bn in revenue in 10 years; shares rise 5%

The company said it has committed more than $1 billion on podcasting and expects podcast revenue to increase materially this year from the $215 million it made last year

Spotify Technology SA 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