Spotify Warns That It May Never Be Able To Generate Sufficient Revenue To Be Profitable.
Spotify Ltd. will begin trading on the New York Stock Exchange on April 3, just a week after the company plans to provide its most recent annual financial guidance.
The music-streaming subscription service announced the timing at an investor day Thursday, in a live-streamed hours-long event designed to introduce the company to public market investors.
Spotify will skip the roadshow meetings and media interviews that are typical in a traditional initial public offering.
While the company will give its first annual financial guidance on March 26, Chief Financial Officer Barry McCarthy laid out long-term operating goals.
Spotify is targeting revenue growth of 25 percent to 35 percent, compared to 39 percent last year when it reached US$5 billion in sales.
McCarthy said the company is aiming for gross margins of 30 percent to 35 percent, up from 22 percent in 2017.
In its listing registration document, Spotify warned that it may never be able to generate sufficient revenue to be profitable.
On Thursday, McCarthy said he sees a trend toward Spotify becoming a money-making business, though investors should expect it to continue investing in growth at the expense of operating profit.