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Last quarter they posted 1.94% profit margin.

• FirmwareBurner 3y ago
  Question: how does Spotify pay so well when they have profit margins lower than a restaurant?
  • twosdai 3y ago
    Scale. A restaurant can only serve 100's or maybe 1000's of guests in a single day. Spotify has Millions of subscriptions. 2% at scale is significant. Here is their recent Q3 earnings report: https://newsroom.spotify.com/2023-10-24/spotify-reports-third-quarter-2023-earnings/ https://newsroom.spotify.com/2023-10-24/spotify-reports-thir... Their revenue was 3.4 Billion Euros at 2% they can take away 68 Million dollars. Which is more than enough for the business to be viable.
  • callalex 3y ago
    For the same reason you buy nicer toilet paper for your home than the stuff you find at a truck stop: it’s not a significant portion of their expenses.