Spotify Lost $59M In 2011, Projects $889M Revenue & More Losses In 2012
(UPDATED) Spotify co-founder and CEO Daniel EK says that 2012 revenues will top $889 million USD as the music streamer expands quickly into more territories. Ek also confirmed figures provided by Swedish business daily Dagens Industri that Spotify sales grew 160% to $236.4 million USD last year and accumulated a net loss of $59.4 million or 25% of total revenue.
Spotify has more than 10 million active users and 3 million paying subscribers, but expects to continue to loose more money this year. "Our focus is all on growth," according to Ek. "That is priority one, two, three, four and five. But of course we expect to make a profit in the long run," he was quoted as saying.
No Spotify IPO On The Horizon
Despite confirmed reports that Spotify is on the hunt for up to $200 million in new funding, EK insisted that the company has no immediate need for cash. And don't expect a Spotify IPO any time soon. "We want to build this company over the long term. Therefore the stock market is not an alternative for us," EK said.
It is projected to have revenues of $889 million this year, up 160 percent on 2011. But with that growth also comes increasing net losses, which in 2011 doubled to the tune of around $60 million.