Spotify, the world's top selling music streaming service, expects revenue to grow 20-30% this year as currency swings slow the pace from 2017 and as it gears up for a highly anticipated stock market listing next week.
The Swedish company said it expected 2018 revenue of €4.9-5.3 billion, which would mark a slowdown from the 39% growth recorded in 2017 when it inked improved licensing deals with major music labels.
For the first quarter, the company forecast revenue of €1.10-1.15 billion, up 22-27% from a year ago.
Spotify marks a breakthrough for Europe's tech start-up scene as the region's first company in decades to carve out, and so far, ably defend its niche - streaming music - against US giants Apple, Amazon and Google.
Shares of Spotify Technology are set to begin trading on the New York Stock Exchange on April 3 in an unusual direct listing that gives insiders the option to sell instantly and does without the support of traditional underwriters.
This is a recipe for potentially high volatility in early trading.
The company was valued around $20 billion based on private stock transactions among existing investors and employees in February, according to its filing.
Loss-making Spotify, which is prioritising rapid growth over profit, said it expected to have signed up between 73 and 76 million paying subscribers this month, roughly twice as many as closest rival Apple has disclosed.
For the full year, it said it is aiming for 92-96 million premium users, representing growth of 33% at the mid-point of that forecast.
It expects total monthly active users in March to number 168-171 million, including those who use the service for free in return for watching advertisements, up from 157 million at the end of last year.
It is targeting 198 million to 208 million total active users by the end of the year.
Operating losses should narrow during 2018 to between €230-330m, the company said, including €35-40m in costs associated with its stock market listing.
In 2017, Spotify reported charges on debt financing drove up operating losses to €378m.