Spotify, the Swedish music-streaming company, reported an operating loss of $389 million (349 million euros) for 2016, topping its loss of $263 million (236 million euros) for 2015.
In a regulatory filing, the company said the losses were, “explained by substantial investments that have been made during the year, mostly in product development, international expansion, and a general increase in personnel.”
Spotify is the subject of speculation it could list on the New York Stock Exchange, according to a report from Reuters. It is apparently weighing a direct listing, a way to list a company on a stock exchange without issuing new shares to the public.
The company reached a deal in April with Universal Music, a move observers say could make the platform more attractive to top musicians, who could release albums exclusively to Spotify premium users. The company is hoping to reach similar deals with Sony Music and Warner Music ahead of a market listing, Reuters reported.
The company was recently valued at $13 billion. Last year Spotify raised $1 billion in convertible debt from private equity firm TPG Capital Management and hedge fund Dragoneer Investment Group.
Under the terms of its funding, TPG and Dragoneer convert their debt to equity at a discount to the offering share price of an IPO, which could push up the timing of the offering.
The company took in $3.27 billion (2.93 billion euro) in revenue in 2016, up from $2.15 billion (1.93 billion euro) the year before.
In March, Spotify said it had 50 million paying subscribers, putting the number of free users around 90 million. By comparison, Apple Music recently announced it has 27 million subscribers.