Spotify Targets 1 Billion Users and 20% Operating Margins by 2030

Spotify Technology held its first Investor Day since 2022 on May 21 in New York. The company presented financial targets that include reaching 1 billion monthly active users and about $100 billion in annual revenue by 2030. Management described an operating model built on mid-teens constant-currency revenue growth, gross margins of 35%–40%, and operating margins above 20%.

As of the first quarter of 2026, Spotify reported 761 million monthly active users, of whom 293 million paid for subscriptions.

Luiga said revenue growth, improved marketplace economics, a stronger advertising business, and high-margin add-on products are expected to support margin expansion. He noted that the company will balance reinvestment in growth against the goal of delivering operating margins above 20%.

Spotify is shifting its product focus toward a multi-product platform that serves different listener segments rather than a single average user. The company highlighted engagement among podcast listeners and introduced a feature called Reserved that reserves concert seats for an artist’s most active fans.

Luiga said AI features are intended to increase engagement and create opportunities for paid add-ons. He cited a new licensing agreement with Universal Music Group that will place certain AI-generated music derivatives behind a paywall. The company reported that Audiobooks+ already has more than 1 million paying users.

Luiga emphasized that retention is a priority because the cost of losing existing customers exceeds the cost of acquiring new ones. Spotify’s stock rose about 15% on the day of the presentation. Bank of America reiterated its buy rating after the event.