Spotify to go public on April 3

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Spotify Technology SA executives outlined their vision for the music-streaming company and dug into its financials, opening to the public a presentation that typically remains behind closed doors, as the company hurtles toward an April initial public offering.

With a worldwide community of more than 159-million, Spotify offers users the choice of a free ad-supported service, or an ad-free Premium subscription service that comes in at R59.99 per month. The startup is taking the atypical route of a direct listing, offering new shares to trade in the open market without banks underwriting the offering. Cue noted that Apple Music has hit 38 million paid subscribers - an increase of two million since the company reported last month.

Ek portrayed Spotify as an underdog not tied to a major technology company, describing a strategy to be a ubiquitous music service available across phones, computers, smart speakers and auto entertainment systems.

Executives also said they want any investor-rather than a curated group-to have the chance to buy shares on the first day.

Spotify said subscriber growth gave the company a clear path to profitability as revenue grew 39% to €4.09bn ($5.03bn, £3.61bn) in 2017 from €2.95bn ($3.63bn, £2.6bn) in 2016.

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However, according to Reuters estimates the business is valued at roughly $19bn.

McCarthy spelled out Spotify's long-term operating targets for generating sustained free cash flow, with annual revenue growth between 25 and 35 percent and gross margin between 30 and35 percent - ambitious for a loss-making company.

The company's SVP offered up some insight into the health of its music streaming service.

Spotify could devour the $28 billion, advertising-driven radio market, he said. "Now it remains to be seen whether we will win, but that's the game we are playing", he said.

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