BRIEF-Spotify puts growth before margins; sets long-term targets

March 15 (Reuters) - Spotify:

* Chief Financial Officer Barry McCarthy says "You should see us continue to invest in growth at the expense of operating profit"

* CFO says reworking deals with major record labels in 2016 and 2017 improved spotify gross margins 700 basis points

* CFO says more than 50 percent of free users become paying subscribers; says it takes 12 months to breakeven on new subs

* CFO says long-term financial goals target revenue growth of 25-35 percent; gross marins of 30-35 percent

* "Scale can be a great enabler of margin expansion," McCarthy said. Further company coverage: (Reporting By Eric Auchard)