But it's still making a loss.
The streaming music service remains one of the darlings of the new media world, but profitability seems to be some way off.
2011 sales were up 160 per cent on 2010, while the loss for the year stood at $59m
Spotify's CEO Daniel Ek told Swedish newspaper Dagens Industri that the firm's revenues are soaring in 2012 – and that they could be as high as $887m already.
But he brushed aside worries about turning this revenue into profit with the statement: “The question of when we’ll show a profit actually feels irrelevant. Our focus is entirely on growth. It is priority one, two, three, four and five.”
Despite the lack of profit, and some dispute over the success or otherwise of its US expansion (where it has 2m users, more than a quarter of which are paid), Spotify is valued at $1 billion.
The company raised $100m last year, and rumours suggest more capital could be raised.
Ek left the door open for this. He said: ”We have no need of more capital in the current situation in order to operate the business plan we have.
“But I have learned to always take the money when you do not need the money. If an investor can add strategic value and the valuation is good, we are interested.”
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