4 ms·

Netflix and Uber make revenue but are not profitable. Not sure about Roku and Spotify

• Ididntdothis 7y ago
  Netflix actually is profitable.
  • jletienne 7y ago
    not at the cash flow level
    • badloginagain 7y ago
      Because their strategy is massive investment into original content to maintain market positioning now that the market is splintering into IP-driven streaming services. Investors signal they approve of this strategy by continuing to invest in Netflix, despite not getting juicy dividends. Netflix could massive reduce spend on OC and payout dividends, but that would be ultimately damaging to the long-term success of the company.
      • Ididntdothis 7y ago
        That actually makes the business model questionable long term . Successful companies make profits while they are still able to invest in their future.
        • majormajor 7y ago
          Netflix's competitors are willing to burn short term money to try to make inroads, so the market is already distorted here.
• luc4sdreyer 7y ago
  Same with Roku, revenue but no profit [1]. Spotify did turn a profit in 2019 [2], for the first time since inception (16 years). However Spotify is predicting a loss for the next year. [1] https://www.macrotrends.net/stocks/charts/ROKU/roku/net-income https://www.macrotrends.net/stocks/charts/ROKU/roku/net-inco... [2] https://www.theverge.com/2019/2/6/18214331/spotify-earnings-financial-announcement-profits-music-streaming-podcast https://www.theverge.com/2019/2/6/18214331/spotify-earnings-...
• chc 7y ago
  Netflix's last quarterly report showed an operating margin of 18.7%, which I think would generally be considered profitable.