Green is the name of the game for music streaming service Spotify. The company released its financial projections for the 2018 fiscal year, expecting to hit 4.9 billion to 5.3 billion euros — $6.1 billion to $6.6 billion — by the end of the year. Spotify, which plans to host its initial public offering on April 3, 2018, expects anywhere from 198 million to 208 million monthly active users by the end of the year — an increase of about 30 percent since 2017.
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The IPO — just weeks away — has many investors turning their heads due to Spotify’s unusual approach of a direct listing, rather than going the traditional route with underwriters. Despite the unique approach, the Spotify IPO is proving to be one of the most hotly anticipated stock offerings in recent memory.
The company also said that it expects that of the approximately 200 million monthly active users that frequent the service, about 92 million to 96 million of them are expected to be paid subscribers — which is an increase of over 30 percent from the figures in 2017.
Investors took note of the figures, especially on the heels of the announcement of the impending IPO, because Spotify is still operating at a loss, even now on the growth front. The Swedish company, headquartered in New York, saw growth numbers of 39 percent in 2017, CNBC reported — and this year’s projections put the company nearly 10 percent behind last year.
Spotify expects to have between 73 million and 76 million paid subscribers by the end of the first quarter; its next largest rival, Apple Music, has about half that number of subscribers, according to CNBC.
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