Revenue at Spotify grew 40% in the first half of this year, according to a new report. Along with the gains, however, came continued losses. The numbers, which were shared privately with investors, come as the music streamer prepares for an IPO early next year.
Revenue at Spotify grew to $2.2 billion in the first half of 2017, putting it on track to end the year close to the $5 billion revenue mark. That’s a jump of about 40% over the previous year.
But major losses also continued, totalling between $118 million and $237 million. That’s down a bit over 10% from the previous year’s losses. The music streamer has negotiated slightly lower rates with #2 music group Sony. If Spotify can negotiate the same lower rates with # 1 Universal and #3 Warners, the company’s losses could narrow further.
These new numbers come from a Spotify disclosure to its investors, first reported by The Information.
Shares on the private markets have traded in recent months at a valuation of $16 billion, up from $13 billion earlier in this year. This growing valuation is also good news for Spotify as it prepares for an IPO early next year. Some analysts predict a $20 billion valuation when the company goes public.
Spotify has declined to comment.