Svenska Dagbladet has launched a new, good podcast called SvD Tech brief (in Swedish). The first two episodes have, in less than 30 minutes, covered a few subjects each of the type slightly more mainstream, but still quite nerdy, tech/business topics. Available on Spotify, Apple Podcasts etc.
In 2021 Google paid $26.3 billion to different partners, mainly to Apple, to the default search engine on iOS, Safari, Firefox and other search engines.
The biggest companies are built with the best product and very aggressive distribution/sales. Google is no exception.
It’s impressive how Meta increased net profit with 164 % year-over-year to $11.6 billion while still having a $3.7 billion loss in Q3 alone in Reality Labs (VR/AR)
Interesting to see that more moderated revenue growth, and with AWS seemingly quite a bit slower than Azure, at Amazon resulted in significantly higher operating profit. Even the international segment was almost profitable, which I rarely seen.
Today Spotify released Q3’23 financial results. The company reached 574 million MAU and 226 million subscribers in Q3 and expects to pass 600 million (!) MAU in Q4. Combined with 13 % lower operational costs y-o-y Spotify ended up with an operating profit and operational cashflow was back to the ca €200 million per quarter it had before Q4’22..
In Q3 Spotify had 9,241 employees (FTEs or full-time equivalents), down from 9 % from Q4’23 when it had 10,151 and roughly in-line with announced layoffs.
With gross profit of €885 million in Q3, that gives about €383,000 in annualized gross profit per employee. At that level it makes sense that Spotify is expecting to be profitable going forward as that is basically the $400,000 in revenue per employee that can be used as rule of thumb for profitability for a SaaS company.
The interview is a few years old, but covers several evergreen topics, including what is required for an investor to give good advice to founders and how to attract brilliant early employees (great other team members + be generous with equity).
Also a reminder that Sun Microsystems created a ‘startup mafia’ long before PayPal.