According to the digital media company The Information, Spotiy’s Q3 financial data shows that the company will have lost $369 million. The year prior the company made $3 billion in revenue, but also lost $581 million. And before that they reported losses over $200 million.
Story Continues Below
Music Producers: Overcome "Beat Block" and Finish More Music Today With This Pack of Essential Tools!
That means that within the last 3 years, the company was not only not profitable, it’s losses total over $1 billion. The company has many financial obligations to continue running, some very necessary like license and royalty fees, and others not so much.
It was reported recently that all Spotify executives make 7-figure salaries and the company’s headquarters is in an extremely expensive building in the middle of Manhattan.
Not the best news for a company that is planning on going public in the coming months. Add to that, the fact that Apple Music’s growth has surpassed that of Spotify and investors are starting to get wary. But it may not be all bad news.
According to Digital Music News:
The Information added that Spotify must work quickly to convince investors that it will grow quickly. Private trading in the company placed its valuation at over $19 billion. GP Bullhound, a major investment bank, states that Spotify may reach $20 billion once Spotify goes public. Halfway through 2018, the investment bank expects the platform’s subscription numbers to reach 100 million. By the end of 2020, its user base may rise to 500 million, with 200 million global paid subscribers.
Despite the losses this year, two other investors confirmed in 2017 the company generated $1.2 billion – up 40% over 2016.