Spotify will lose a projected $60 million this year, despite a massive growth in revenue to $889 million, but that's not fazing CEO Daniel Ek.
"Our focus is entirely on growth," he told Swedish paper Dagens Industri ( via TechCrunch), dismissing concerns over losses and pressures over the lack of profits. In fact, despite the company being valued at around $4 billion, he's not looking at heading toward an IPO any time soon either, despite other tech companies - most notably Facebook - heading down that road in the near future. "We want to build this company long-term... the stock exchange is not an option for us."
Spotify's 2011 U.S. launch and subsequent expansion to other countries around the world, in addition to its app integration and new "play" button, have garnered the company 13 million active users and 3 million paid subscribers to date, but with its increasing user base has come higher royalty payments, an issue that is plaguing Internet radio leader Pandora as well.
Yet Spotify, despite its losses, makes enough to cover its operating costs and doesn't need more money to execute its current business plan, said Ek. He does not, however, rule out taking more investment money.
"I have learned to always take the money [even] when you do not need the money," he said; Spotify has raised $189 million in investor capital so far, according to CrunchBase. "We work on the principle that if an investor can add strategic value and the valuation is good, we are interested."