Spotify is forecasting that it will reach up to 96 million subscribers in its fiscal 2018.
Ahead of its IPO on April 3, the streaming giant has issued its financial outlook for Q1 2018 and the full year. It follows a period of strong growth in revenue terms including the UK subsidiary.
Total premium subscribers in its fiscal 2018 are set to reach between 92m and 96m – an increase of between 30% and 36% year-on-year. Total monthly active users (MAU) for the year are forecast to reach 198-208m, up 26-32%. Spotify has recently expanded into new territories.
The upper limit for total revenue for 2018 is set to be €5.3 billion (£4.63 billion), a year-on-year increase of 30%. But exchange rate fluctuation is set to have a negative impact of up to €300m (£261.8m).
Operating loss is forecast to be €230-330m (£200.75m to £288m) in fiscal 2018, including an estimated €35-40m (£30.5m to £34.9m) cost for the direct listing.
Spotify’s gross margin is forecast to be 23-25% in 2018.
For Q1 2018, MAUs are set to reach up to 171m (up 31%) and premium subscribers will be 73m to 76m (an increase of between 41-46%). On revenue of €1.1 billion to €1.5 billion (£960m to £1.31 billion), the Q1 operating loss is set to be €50-80m (£43.6m to £69.8m).
Spotify executives outlined their growth strategy during the recent IPO investors event. The company has since announced a partnership with Cadillac as it aims to grow its streaming audience in cars.