GoKawiilSpotify shares jumped 15% after the music streaming platform laid out guidance for 2030 and reached an AI deal with Universal Music, as the technology sparks major disruption concerns across the industry.
The company expects revenue at a compounded annual growth rate in the mid-teens and gross margins between 35% and 40%. Spotify referred to plans to reach 1 billion subscribers and $100 billion in revenue as its "north star."
As part of the deal with Universal, Spotify will let users create covers and remixes using the voices of artists and songwriters who opt in. Spotify said the tool will launch as a paid add-on for premium users and offer a new revenue stream for artists.
"Today, there is no media player for both public and private content - or put differently - there is no media player for the generative era," co-CEO Gustav Söderström told investors on Thursday at its first investor day since 2022. "We believe Spotify will become that."
Spotify is in the middle of a reshuffle, and the stakes are high.
Shares have lost a quarter of their value over the last year. This is the first investor day for the company in four years and under the direction of its new co-CEOs, Söderström and Alex Norström. Founder and former CEO Daniel Ek stepped down at the start of this year after about two decades at the helm.
Spotify is also trying to prove it can be more than a music streaming platform as it bets on verticals like audiobooks and podcasts.